Ask Question
BusinessBusiness
10 November, 21:01

Lending money and collecting the loans are A. operating activities. B. investing activities. C. Non-cash investing and financing activities. D. financing activities.

+2
Answers (1)
  1. 10 November, 21:52
    0
    B. investing activities.

    Explanation:

    Cash flow transactions are categorized into three categories,

    Operating Investing Financing

    Under Investing activities a company invests the money or cash in some sort of securities, in our case case loan, while investing it gives the money to some third person, then it gets return like interest or dividend on such amount.

    Here, the company has lend some money in the form of loan and then it collects the loan, therefore it is investing activity.

    Exceptionally if a company is a banking or NBFC companies then it lends money in normal course, and then collects them back in that case it is operating activity.

    In general it is

    B. investing activities.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Lending money and collecting the loans are A. operating activities. B. investing activities. C. Non-cash investing and financing ...” 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
You Might be Interested in
Why do you think demand for a product will often increase if the product is endorsed by a celebrity. And also consider the other side of the question related to the firm.
Answers (1)
Determine what a person should take into account when purchains expensive, durable goods.
Answers (1)
A favorable cost variance occurs when a. standard costs are less than actual costs b. actual costs are more than standard costs c. actual costs are the same as standard costs d. standard costs are more than actual costs
Answers (1)
Suppose that the government sets a price floor for milk that is above the competitive equilibrium price With the price floor, consumers are willing to purchase the quantity indicated where the price floor intersects the With the price floor, the
Answers (1)
McCoy's Fish House purchases a tract of land and an existing building for $920,000. The company plans to remove the old building and construct a new restaurant on the site.
Answers (1)
New Questions in Business
Richard hires Paul to paint his kitchen in two eight-hour days of work for $500. At the end of the first day, the kitchen is 85 percent complete. Richard asks Paul to stay late and finish.
Answers (1)
A manager demonstrates when he listens carefully to his subordinates and works to build trusting relationships.
Answers (1)
On March 1, 2017, Boyd Company acquired real estate, on which it planned to construct a small office building, by paying $80,000 in cash.
Answers (1)
A. Assume that the risk-free rate is 8 percent, the required rate of return on the market (or an average-risk stock) is 13 percent, and the required rate of return on Acme Healthcare stock is 15 percent.
Answers (1)
taxes: a. are unlikely to affect market supply and demand b. are copmulsory payments to governments c. never affect efficiency in the allocation of resourcesd. are voluntary payments to governments
Answers (1)
Home » Business » Lending money and collecting the loans are A. operating activities. B. investing activities. C. Non-cash investing and financing activities. D. financing activities.
Sign Up Forgot Password?