Statement I.The purchase of 100 shares of Apple Corporation stock adds directly to plant and equipment.
Statement II.The purchase of 100 shares of Apple Corporation stock is not an investment,but merely a financial transaction.

Question

Quizplus · Accepted Answer

Statement I is false because purchasing stocks does not directly add to plant and equipment. Statement II is true because purchasing stocks is a financial transaction and not an investment in the sense that it does not involve acquiring ownership or control over the company's operations.