Which activity would include borrowing money or issuing stocks to raise capital?

Financing activities encompass transactions that involve raising capital through various means, such as borrowing money or issuing stocks. These activities are crucial for a company as they provide the necessary funds to support operations, invest in growth opportunities, and manage the overall financial structure of the business.

When a company borrows money, it typically takes on debt obligations, which may include loans or bonds. Issuing stocks involves selling shares of the company to investors in exchange for equity, which provides capital without incurring debt. Both actions are essential for financing the company's initiatives and sustaining its operations over the long term.

Operating activities, on the other hand, pertain to the day-to-day functions of the business, such as revenue generation and expenses. Investing activities generally involve the acquisition and disposal of long-term assets, like property or equipment. The cost of goods sold refers specifically to the direct costs attributable to the production of goods sold by a company, which does not involve raising capital.