Typical financing activities do NOT include the following
A) Proceeds from issuance of short- and long-term borrowings.
B) Principal payments on short- and long-term borrowings.
C) Purchase of short- or long-term investments for cash.
D) Purchase of shares for retirement.

Question

Quizplus · Accepted Answer

Financing activities involve transactions related to raising capital and repaying investors, including issuing debt and equity as well as repaying debt. The purchase of short- or long-term investments for cash is considered an investing activity, not a financing activity.

Typical Financing Activities Do NOT Include the Following