Which of the following is an example of an operating activity?
A)Paying dividends
B)Sale of investment in other companies' shares
C)Purchase of property, plant, and equipment
D)Payment of interest expense

Question

Quizplus · Accepted Answer

Payment of interest expense is an operating activity as it relates to the cost of financing the company's operations. A is incorrect as paying dividends is a financing activity. B is incorrect as the sale of investments in other companies' shares is an investing activity. C is incorrect as the purchase of property, plant, and equipment is also an investing activity.

Which of the Following Is an Example of an Operating