An example of an investing activity is:
A)Paying wages of employees.
B)Dividends paid to stockholders.
C)Purchase of land.
D)Selling inventory.
E)Investments by stockholders in exchange for common stock.

Question

Quizplus · Accepted Answer

The purchase of land is an investing activity because it is acquiring a long-term asset that will provide a return on investment in the form of potential development or appreciation in value. Paying wages, paying dividends, and selling inventory are operating activities, while investments by stockholders would be classified as financing activities.

An Example of an Investing Activity Is