Garrison Corporation has the following transactions:
1)Dividends are paid to the shareholders.
2)A utility bill for July is paid in August.
3)A new warehouse facility is purchased
4)Principal payments on outstanding debt are paid.
5)Employees wages are paid.
6)Forty-five units of inventory are sold for $100 each
7)Common stock is issued for $230,000 in cash.
8)A delivery van used for 5-years is sold for $12,000, which is its book value.
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Which of the above transaction(s) are examples of investing activities?
A) 3,4,7,8
B) 1,4,7
C) 4,7
D) 3,8

Question

Quizplus · Accepted Answer

Investing activities involve the purchase and sale of long-term assets and other investments. Transaction 3 (purchase of a new warehouse facility) and transaction 8 (sale of a delivery van at its book value) fall under investing activities.

Garrison Corporation Has the Following Transactions