Kim’s flowers decided to borrow $26,000 from the bank and use the proceeds to purchase a new delivery vehicle. How should they categorize these business activities?.

Respuesta :

Based on the fact that Kim's flowers borrowed the money and used it to buy a new delivery vehicle, this business activity should be categorized as both a financing activity and an investing activity.

What should they classify this business activity as?

Because Kim's Flowers got the money as a loan, it would be recorded as an inflow for financial activities.

They then used it to purchase a delivery vehicle which is an investment and a capital asset so this will count as an investment activity.

Find out more on classifying business activities at https://brainly.com/question/14790406

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