Which of the following is an investing activity?
A) Purchase of equipment.
B) Payment of interest.
C) Issuing ordinary shares.
D) Issuing long-term debt.

Question

Quizplus · Accepted Answer

Purchase of equipment is an investing activity as it involves the acquisition of long-term assets that are used in the business operations.

B) Payment of interest is a financing activity as it involves the payment of interest on debt that has been issued.

C) Issuing ordinary shares is a financing activity as it involves the issuance of equity securities to raise capital.

D) Issuing long-term debt is a financing activity as it involves the issuance of debt securities to raise capital.

Which of the Following Is an Investing Activity