Which balance sheet section is most affected by investing activities?
A) Current assets and current liabilities.
B) Long-term assets.
C) Long-term liabilities.
D) Stockholders' equity.

Question

Quizplus · Accepted Answer

Investing activities involve the acquisition and disposal of long-term assets, such as property, plant, and equipment and investments, which are categorized under the long-term assets section of the balance sheet. Current assets and liabilities mainly reflect short-term operating activities, while long-term liabilities and stockholders' equity are more affected by financing activities.

Which Balance Sheet Section Is Most Affected by Investing Activities