Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 140

Which of the following is most appropriately placed in the financing section of an organization's cash budget?

Answer options

• A. Collections from customers.
• B. Sale of securities.
• C. Purchase of trucks.
• D. Payment of debt, including interest.

Correct answer: D

Explanation

The correct answer is D because financing activities typically involve transactions related to raising or repaying capital. Collections from customers (A), sale of securities (B), and purchase of trucks (C) are operational or investing activities, not financing.