[Jennifer241]

Does anyone else feel that Wiley has some of the questions in this area wrong?

It states: The bank borrowing, dividend payment, and bank loan payment are financing activities.

Are loans a financing activity and not an investing activity?

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Study Monk]

If you are the person giving out the loan its investing. If you are receiving the loan it is financing. Financing is how you pay for stuff. You can either take out loans or sell equity. All of those activities would be financing. Investing usually involves assets. Financing usually involves equity and liability accounts.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

If you are the person giving out the loan its investing. If you are receiving the loan it is financing. Financing is how you pay for stuff. You can either take out loans or sell equity. All of those activities would be financing. Investing usually involves assets. Financing usually involves equity and liability accounts.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Jennifer241]

Apparently I just needed a day or two break from it to understand what you wrote @Study Monk, makes perfect sense now.

Thank you!

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Jennifer241]

Apparently I just needed a day or two break from it to understand what you wrote @Study Monk, makes perfect sense now.

Thank you!

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Author]

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