Which of the following is considered an investing activity?
A) Payment of dividends to shareholders
B) Payment to a supplier for inventory
C) Interest payments to a lender
D) Cash payments from swap contracts

Question

Quizplus · Accepted Answer

Cash payments from swap contracts are considered investing activities as they relate to the purchase or sale of assets for investment purposes. Payment of dividends, payment to a supplier for inventory, and interest payments to a lender are all considered operating activities as they relate to the day-to-day operations of the business.

Which of the Following Is Considered an Investing Activity