An example of a financing activity is:
A)the sale of merchandise for cash.
B)the purchase of a building.
C)the sale of used equipment for cash.
D)the issue of stock for cash.

Question

Quizplus · Accepted Answer

The issue of stock for cash is a financing activity that involves the sale of ownership in the company to investors in exchange for capital. This transaction represents an inflow of cash for the company and is used to finance its operations or investments. The other options (A, B, and C) are related to operating or investing activities of the business.

An Example of a Financing Activity Is