The repayment of the principal on a loan used to finance the purchase of equipment should be classified as a(n) :
a. operating activity
b. investing activity
c. financing activity
d. noncash transaction

The correct answer is c. Financing activity.

Explanation:

Financial activity represents that set of operations that are executed in the market of proponents and claimants of financial resources, including those systematizations that enter into the market alignment of money and capital. Likewise, the objective of the financial activity is to regularize the funds of the savers towards the investors. It is born of the compatible existence of economic employees with Surplus in their budgets (always their expenses are lower than their income) and of economic agents with deficits in their budgets, the funds are thus conducted and can be used for investment for consumption.

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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