Knowledge of the entity's financing activities includes understanding the entity's:
A) debt structure.
B) inventory management policies
C) location of property, plant and equipment.
D) all of the above

Question

Quizplus · Accepted Answer

Understanding an entity's financing activities primarily involves knowledge of its debt structure, as this relates to how the entity finances its operations and growth through borrowing. Inventory management policies and the location of property, plant, and equipment are more related to the entity's operating activities rather than its financing activities.

Knowledge of the Entity's Financing Activities Includes Understanding the Entity's