Ask Question
20 June, 07:59

An example of a situation in which company needs credit for investing activities is: Select one: A. Start-up operating losses B. Refinancing of debt C. Mergers and acquisitions D. Seasonal sales patterns

+2
Answers (1)
  1. 20 June, 11:34
    0
    C. Mergers and acquisitions

    Explanation:

    The need for credit will be determined by the activities that an organisation wants to embark or engage in

    For instance

    1. Start-up operating loss will be an operating activity decision because issues such as net income and its cash flows are determined under operating activities

    2. Refinancing of debt - This is a financing decision it has to do with how an organisation's capital is acquired. Gearing is involved so it is a financing decision

    3. Seasonal Sales Patterns affect net income or net loss for a particular period and when net income or loss is involved it is an operating decision

    4. Mergers and Acquisitions However, will mean a company is about to invest in another company mainly through the purchase of its assets. Once the purchase of assets are involved then it is an investing activity.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An example of a situation in which company needs credit for investing activities is: Select one: A. Start-up operating losses B. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers