Which balance sheet accounts are most affected by investing activities?
A)Current assets
B)Current liabilities
C)Long term assets
D)Long term liabilities
E)Stockholders' equity

Question

Quizplus · Accepted Answer

Investing activities involve the acquisition and disposal of long term assets such as property, plant, and equipment, investments in stocks and bonds, and other long term investments. Therefore, the long term assets account is most affected by investing activities. Current assets and liabilities are more influenced by operating activities, while long term liabilities are more related to financing activities. Stockholders' equity can be affected by all three activities, but not to the same extent as long term assets.

Which Balance Sheet Accounts Are Most Affected by Investing Activities