Which of the Following Is Not an Investing Activity

question 184

Multiple Choice

Which of the following is not an investing activity?

• A)Purchase of investments for cash
• B)Purchase of equipment for cash
• C)Sale of merchandise for cash
• D)Sale of land for cash

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Definitions:

Debt-to-equity Ratio

This proportion demonstrates the relative use of debt and shareholders' equity in the capital funding of a company's assets.

Receivable Turnover

A financial metric indicating how efficiently a company collects cash from credit sales by measuring the number of times average accounts receivable are collected over a period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.