Transactions of a company that include the purchase and sale of long-term productive assets are referred to as:
A)Investing activities.
B)Financing activities.
C)Expenditure activities.
D)Operating activities.

Question

Quizplus · Accepted Answer

Investing activities involve transactions related to the acquisition and disposal of long-term productive assets such as property, plant, and equipment, as well as investments in other companies. Financing activities involve transactions related to obtaining or repaying funds from creditors or investors. Operating activities involve transactions related to the primary business operations of the company, such as revenue and expenses from the sale of goods or services. Expenditure activities is not a commonly used term in accounting and is not relevant to this question.

Transactions of a Company That Include the Purchase and Sale