Which of the following classifications refers to those activities associated with buying and selling long-term assets?

Question

Quizplus · Accepted Answer

Investing refers to buying and selling long-term assets such as property, plant, and equipment. Operating refers to the regular day-to-day activities of a business, such as producing and selling goods or services. Borrowing refers to obtaining funds through loans or other forms of credit. Financing refers to raising capital through issuing stocks or bonds, or other means of long-term financing. Therefore, the best classification for buying and selling long-term assets is investing.

Which of the Following Classifications Refers to Those Activities Associated