Identify financing activities from the items given below. (Select all that apply.) Check All That ApplyReceipt of dividendsReceipt of dividendsLending with notes receivableLending with notes receivableIssuance of notes payableIssuance of notes payableCollection of accounts receivableCollection of accounts receivableRepayment of bondsRepayment of bondsPayment of dividends
Question
Identify financing activities from the items given below. (Select all that apply.) Check All That ApplyReceipt of dividendsReceipt of dividendsLending with notes receivableLending with notes receivableIssuance of notes payableIssuance of notes payableCollection of accounts receivableCollection of accounts receivableRepayment of bondsRepayment of bondsPayment of dividends
Solution
The financing activities from the items given are:
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Issuance of notes payable: This is a financing activity because it involves raising funds for the company. When a company issues notes payable, it is essentially borrowing money that it will pay back at a later date.
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Repayment of bonds: This is also a financing activity. When a company repays its bonds, it is paying back money it had previously borrowed.
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Payment of dividends: This is a financing activity because it involves the distribution of profits back to the company's shareholders.
So, the financing activities are Issuance of notes payable, Repayment of bonds, and Payment of dividends.
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