The repayment of the principal on a loan used to finance the purchase of equipment should be classified as a(n) :
a. operating activity
b. investing activity
c. financing activity
d. noncash transaction

The correct answer is c. Financing activity.

Explanation:

Financial activity represents that set of operations that are executed in the market of proponents and claimants of financial resources, including those systematizations that enter into the market alignment of money and capital. Likewise, the objective of the financial activity is to regularize the funds of the savers towards the investors. It is born of the compatible existence of economic employees with Surplus in their budgets (always their expenses are lower than their income) and of economic agents with deficits in their budgets, the funds are thus conducted and can be used for investment for consumption.

answer decisions made by individual households and firms;