Question

All businesses are involved in three types of activities—financing, investing, and operating. Listed below are the names and descriptions of companies in several different industries.

Abitibi-Consolidated Inc.—manufacturer and marketer of newsprint
California State University-Northridge Student Union—university student union
Oracle Corporation—computer software developer and retailer
Aquilini Investment Group—owner of the Vancouver Canucks ice hockey team
Grant Thornton LLP—professional accounting and business advisory firm
Southwest Airlines—low-cost airline

For each of the above companies, provide examples of a financing activity, an investing activity, and an operating activity that the company likely engages in.

Answer 1

Answer:

a.

Abitibi Consolidated Inc.—

Operating activity: Sale of newpaper

Investing activity: Purchase of printing machines

Financing activity: Bank loan

Cal State–Northridge Stdt Union—

Operating activity: Scholarships

Investing activity: Purchase of furniture

Financing activity: Government grants

Oracle Corporation—

Operating activity: Sale of computer software

Investing...