Skip to main contentSkip to solution

Which one of the following activities relate to financing activities?

Solution

✅ Correct Option: 3

Financing activities involve changes in the size and composition of the owners' capital and borrowings. Royalties are operating; purchase and sale of fixed assets are investing activities. Payment of dividend relates to the return to shareholders on their capital and is therefore a financing activity.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question