Asked by albandari aljuaid on Jul 06, 2024
Verified
Financing activities also include long-term purchases and sales of financial assets.
Financing Activities
Transactions and events that affect the long-term liabilities and equity of a company, including issuing or repurchasing equity and debt.
Financial Assets
Assets that derive value because of a contractual right or ownership claim, including stocks, bonds, and bank deposits.
- Analyze the impact of financing and operating activities on financial statements and ratios.
Verified Answer
EG
Elissa GoldbergJul 08, 2024
Final Answer :
False
Explanation :
Financing activities primarily involve transactions related to raising capital (debt and equity) and repaying investors, including dividends, not the purchase and sale of long-term financial assets, which are considered investing activities.
Learning Objectives
- Analyze the impact of financing and operating activities on financial statements and ratios.
Related questions
Compete Corporation Reported a Quick Ratio of 1 ...
Indicate the Effect of Each Item on the Particular Ratio ...
Which of the Following Does Not Correctly Describe the Effect ...
Which of the Following Ratios Increases When Inventory Is Sold ...
The Following Data Were Reported by Universe Company at Year-End ...