Operating, investing, and financing activities affect certain balance sheet accounts.Which of the following statements is true?
A) Operating activities primarily involve transactions which affect noncurrent assets.
B) Investing activities primarily involve U.S.government securities and long-term productive assets.
C) Financing activities primarily involve transactions which affect current liabilities.
D) Different balance sheet accounts are affected depending on whether the direct or indirect method is used.

Question

Quizplus · Accepted Answer

Investing activities include transactions involving the purchase and sale of long-term assets and other investments, not necessarily limited to U.S. government securities, but including them as well as long-term productive assets like property, plant, and equipment.

Operating, Investing, and Financing Activities Affect Certain Balance Sheet Accounts