Question

What characterizes Financing Activities?

a.

Purchase and sale of goods and services

b.

Changes in the investment portfolio

c.

Borrowings and activities resulting in changes in the size and composition of owners' capital

d.

Cash payments for operating expenses

Posted under IC 89 Management Accounting

Answer: (c).Borrowings and activities resulting in changes in the size and composition of owners' capital Explanation:Financing Activities are characterized as activities that result in changes in the size and composition of the owners' capital and borrowings of the entity.

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Q. What characterizes Financing Activities?
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