An example of an investing activity is:
A) Selling inventory.
B) Paying wages of employees.
C) Withdrawals by the owner.
D) Contribution from owner.
E) Purchase of land.

Question

Quizplus · Accepted Answer

The purchase of land is a typical investing activity as it represents an acquisition of assets with the purpose of generating income or future gains. Selling inventory, paying wages, and withdrawals of the owner are related to operations or financing activities, while contributions from the owner may be related to either financing or investing activities depending on the purpose of the contribution.

An Example of an Investing Activity Is