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    Financing activities: selling equipment, paying interest, paying principal, buy equipment

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    Which of the following events is a financing activity to a company?

    A) Selling equipment
    B) Paying interest on a loan
    C) Paying off the principal portion of a loan
    D) Purchasing equipment

    Please select one of the answers stated above.

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    Solution Preview

    The correct answer is B. Paying interest on a loan is found on the liability side of the balance sheet and is ...

    Solution Summary

    For each of the four events, the solution explains the category for inclusion on a cash flow statement.