An example of an investing activity is
A)purchase of inventory.
B)collections of amounts owed by customers.
C)purchase of shares of other companies.
D)payment of taxes.

Question

Quizplus · Accepted Answer

The purchase of shares of other companies is an investing activity. It involves the acquisition of assets with the intent of generating a return on investment through dividends, capital gains, or other means. Purchasing inventory, collecting amounts owed by customers, and paying taxes are all examples of operating or financing activities, not investing activities.

An Example of an Investing Activity Is