Which of the following is an investing activity?
A) Purchase of a patent
B) Payment of cash dividends
C) Payment of interest
D) Purchase of inventory

Question

Quizplus · Accepted Answer

Purchase of a patent is considered an investing activity, as it involves acquiring an asset that is expected to provide future benefits to the company.

Answer: D
 Purchase of inventory is not an investing activity, it is considered an operating activity as it relates to the primary business of the company.

Which of the Following Is an Investing Activity