An example of an investing activity is
A) the issue of preferred stock.
B) the resale of treasury stock.
C) the issue of bonds and notes payable.
D) the purchase of property,plant,or equipment for cash.

Question

Quizplus · Accepted Answer

The purchase of property, plant, or equipment for cash is an investing activity because it involves acquiring a long-term asset that will benefit the company over several years. The other options listed are financing activities (issuing preferred stock and bonds) and a treasury stock transaction (reselling shares previously issued).

An Example of an Investing Activity Is