The purchase of factory equipment would be an example of which type of business activity?
A) Financing
B) Investing
C) Operating
D) All of these

Question

Quizplus · Accepted Answer

The purchase of factory equipment is an example of investing activity, as it involves the acquisition of long-term assets that will benefit the company in the future. Financing activities involve obtaining capital to fund the business, such as issuing stocks or taking out loans. Operating activities are the daily functions that generate revenue and expenses, such as selling products and paying employees.

The Purchase of Factory Equipment Would Be an Example of Which