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Paying interest expense and receiving interest revenue are examples of?

A) operating activities.
B) financing activities.
C) delivery activities.
D) investing activities.

asked
User AlexPad
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8.3k points

1 Answer

2 votes

Final answer:

Paying interest expense and receiving interest revenue fall under operating activities, reflecting the use of financial capital sources like banks and bonds in running a firm's daily operations.

Step-by-step explanation:

Paying interest expense and receiving interest revenue are examples of operating activities. These transactions are part of a firm's everyday business operations, where it leverages different financial capital sources to fund its projects. While borrowing from banks or issuing bonds requires a firm to commit to scheduled interest payments, which are considered operating activities, selling stock transfers ownership and control but does not involve interest payments.

answered
User Iain Rist
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8.2k points

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