Which of the following statements is correct concerning investing activities?
A) They involve obtaining and managing financial resources.
B) They use financial resources to acquire items to sell in the normal course of activities.
C) They use financial resources to acquire the assets a company needs to produce and sell its products.
D) They involve buying and selling a company's own shares.

Question

Quizplus · Accepted Answer

Investing activities involve the use of financial resources to acquire the assets that a company needs to produce and sell its products. This includes the purchase of property, plant, and equipment, as well as investments in other companies or securities. Option A refers to financing activities, option B refers to operating activities, and option D refers to financing activities.

Which of the Following Statements Is Correct Concerning Investing Activities