What Is an Investing Activity

question 6

Multiple Choice

What is an investing activity?

• A)Activities that do not involve cash.
• B)Activities involving the acquisition of investments not included in cash equivalents.
• C)Activities involving the principal revenue-producing activities of the entity.
• D)Activities involving changes in the size and composition of the equity's borrowings.

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Definitions:

Variable Costs

Expenses that vary directly with the volume of production or services a company offers, including labor and materials.

Total Revenue

A company's aggregate income from product sales and service charges within a set timeframe.

Variable Costs

Expenditures that shift in accordance with the scale of output or level of production activities.

Total Revenue

The income that a company generates from its business activities, typically from the sale of goods and services before any expenses are deducted.