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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 Summary

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

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

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