Which of the Following Represents an Investing Activity in the Statement

question 47

Multiple Choice

Which of the following represents an investing activity in the statement of cash flows?

• A)Depreciation of plant assets
• B)Sale of plant assets at a loss
• C)Stock dividend
• D)Purchase of inventory

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Definitions:

Fixed Cost

Fixed cost refers to expenses that do not change regardless of the business's level of output or sales, such as rent or salaries.

Long-Run Supply Curve

A curve that shows the relationship between market prices and quantities supplied over a period when all production inputs are variable.

Mad Cow Disease

A neurological disorder in cattle that can be transmitted to humans, causing a fatal brain disease.

Economic Profits

Profits exceeding the opportunity costs of all resources used by a firm.