Borrowing money is an example of a financing activity.

Here's why:

1. Non-cash activities are transactions that do not involve any cash flows, such as depreciation or amortization. Borrowing money involves cash inflow, so it's not a non-cash activity.

2. Investing activities are related to the acquisition and disposal of long-term assets, such as property, plant, and equipment, or other investments. Borrowing money doesn't fall into this category.

3. Operating activities are the primary revenue-producing activities of a business, such as selling goods, providing services, and other day-to-day business operations. Borrowing money is not an operating activity.

4. Financing activities are transactions involving changes in equity and borrowings, which are used to fund the company's operations and expansions. Borrowing money falls into this category because it's a way for the company to generate funds for its operations or expansions.

Question

Borrowing money is an example of a financing activity.

Here's why:

1. Non-cash activities are transactions that do not involve any cash flows, such as depreciation or amortization. Borrowing money involves cash inflow, so it's not a non-cash activity.

2. Investing activities are related to the acquisition and disposal of long-term assets, such as property, plant, and equipment, or other investments. Borrowing money doesn't fall into this category.

3. Operating activities are the primary revenue-producing activities of a business, such as selling goods, providing services, and other day-to-day business operations. Borrowing money is not an operating activity.

4. Financing activities are transactions involving changes in equity and borrowings, which are used to fund the company's operations and expansions. Borrowing money falls into this category because it's a way for the company to generate funds for its operations or expansions.

Knowee AI · Accepted Answer

Borrowing money is an example of a financing activity.

Here's why:

1. Non-cash activities are transactions that do not involve any cash flows, such as depreciation or amortization. Borrowing money involves cash inflow, so it's not a non-cash activity.

2. Investing activities are related to the acquisition and disposal of long-term assets, such as property, plant, and equipment, or other investments. Borrowing money doesn't fall into this category.

3. Operating activities are the primary revenue-producing activities of a business, such as selling goods, providing services, and other day-to-day business operations. Borrowing money is not an operating activity.

4. Financing activities are transactions involving changes in equity and borrowings, which are used to fund the company's operations and expansions. Borrowing money falls into this category because it's a way for the company to generate funds for its operations or expansions.

Borrowing money is an example of:Group of answer choicesa non-cash activity.a financing activity.an investing activity.an operating activity.

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Borrowing money is an example of:

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