A. credit as a factor in business
B. payments for goods in cash
C. increased financial activities
D. government intervention
Correct Answer:
Option C – increased financial activities
Explanation
Financing activities are transactions or business events that affect long-term liabilities and equity. In other words, financing activities are transactions with creditors or investors used to fund either company operations or expansions. These transactions are the third set of cash activities displayed on the statement of cash flows.
