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

Question

Quizplus · Accepted Answer

The purchase of land is an example of an investing activity, as it involves the investment of funds with the aim of generating income or appreciation in the future. Paying wages of employees, withdrawals by the owner, selling inventory, and contributions from the owner are not examples of investing activities, as they do not involve the acquisition or disposal of long-term assets such as land, buildings, or equipment.

An Example of an Investing Activity Is