Which of the following is an example of an operating activity?
A)paying dividends
B)sale of investment in other companies' shares
C)purchase of property,plant,and equipment
D)payment of interest expense

Question

Quizplus · Accepted Answer

Paying dividends (A) is a financing activity, as it involves distributing profits to the company's owners/shareholders. Sale of investment in other companies' shares (B) is an investing activity, as it involves buying and selling assets outside the company's normal operations. Purchase of property, plant, and equipment (C) is also an investing activity, as it involves acquiring long-term assets necessary for the business's operations. Payment of interest expense (D) is an operating activity, as it is a normal and necessary expense incurred in the course of the company's operations.

Which of the Following Is an Example of an Operating