Which of the following would be an example of an investing activity?
A) Issuance of long-term bonds
B) Issuance of common stock
C) Payment of cash dividends
D) Sale of plant assets

Question

Quizplus · Accepted Answer

The sale of plant assets is considered an investing activity because it involves the disposal of a long-term asset held for productive use in the business. Issuance of long-term bonds and common stock are financing activities, while payment of cash dividends is a cash flow from operating activities.

Which of the Following Would Be an Example of an Investing