Which one of the following is an investing activity of a business?
A)Paying for purchases of inventory
B)Issuing stock for cash
C)Borrowing money from a bank
D)Purchasing a manufacturing plant for cash

Question

Quizplus · Accepted Answer

Purchasing a manufacturing plant for cash is an investing activity because it involves the acquisition of long-term assets that will generate revenue for the business over an extended period of time. Paying for purchases of inventory, issuing stock for cash, and borrowing money from a bank are all financing activities.

Which One of the Following Is an Investing Activity of a Business