Answer:
A company obtains [tex]\$125,000[/tex] from the Northern Bank and takes the loan proceeds in cash. This represents a(n) Financing activity.
Explanation:
Financing activity:
- Financing activities show the progress of cash between a business furthermore its owners and creditors.
- Financing activities concentrate on how the business develops capital and rewards spine its investors.
- The activities include issuing and selling stock, returning cash dividends, and combining loans.
- Borrowing and compensating short-term loans, Borrowing and repaying long-term loans, and separate long-term liabilities.
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