Making and collecting loans and disposing of property, plant, and equipment are
A) Liquidity activities.
B) Financing activities.
C) Investing activities.
D) Operating activities

Question

Quizplus · Accepted Answer

Making and collecting loans and disposing of property, plant, and equipment are examples of investing activities as they involve the acquisition and disposal of long-term assets for the purpose of generating revenue or reducing expenses in the future. Financing activities involve obtaining and repaying funds from creditors or investors, while operating activities involve the day-to-day business activities of the company. Liquidity activities involve managing short-term assets and liabilities to ensure the company has enough cash on hand to meet its obligations.

Making and Collecting Loans and Disposing of Property, Plant, and Equipment