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

To determine which category borrowing money falls under, let's analyze the options:

1. Operating Activity: This involves the day-to-day operations of a business, such as revenue generation, payment to suppliers, and other activities directly related to core business functions. Borrowing money does not relate to day-to-day operations.

2. Non-Cash Activity: This refers to activities that do not involve cash transactions, such as converting debt to equity. Borrowing money involves cash; thus, it does not qualify under this category.

3. Investing Activity: This includes transactions relating to the purchase or sale of long-term assets or investments, like real estate, equipment, etc. Borrowing money is not directly related to acquiring assets but rather to finance operations.

4. Financing Activity: This pertains to transactions related to obtaining or paying back capital, such as loans, issuance of stock, and payment of dividends. Borrowing money directly pertains to financing the business.

Final Answer

Borrowing money is an example of a financing activity.