The purchase of common shares of another company would appear in the:
A) operating activities section
B) financing activities section
C) investing activities section
D) financing activities section or the investing activities section

Question

Quizplus · Accepted Answer

The purchase of common shares of another company would be considered an investing activity because it involves the acquisition of a long-term asset with the intention of earning a return on investment.

The Purchase of Common Shares of Another Company Would Appear