Investing activities include the cash effects of
A)producing and delivering goods and services.
B)purchasing and disposing of fixed assets used in production of revenue.
C)borrowing and repaying loans used to purchase fixed assets.
D)selling stocks and bonds to raise capital to purchase fixed assets.

Question

Quizplus · Accepted Answer

Investing activities refer to activities involved in the acquisition and disposal of long-term assets, such as property, plants, and equipment, that are used in the production of revenue. Therefore, purchasing and disposing of fixed assets used in production of revenue is the only choice that represents an investing activity. A refers to operating activities, C refers to financing activities, and D refers to financing and investing activities.

Investing Activities Include the Cash Effects of