Which of the Following Is an Example of an Operating

question 3

Multiple Choice

Which of the following is an example of an operating activity?

• A)Paying dividends
• B)Sale of investment in other companies' shares
• C)Purchase of property, plant, and equipment
• D)Payment of interest expense

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Definitions:

Inventory Cycle Theory

A theory explaining the fluctuations in inventory levels and production rates within firms, based on changes in sales forecasts and supply chain efficiencies.

Recession Of 2001

A period of economic decline observed in the United States from March to November 2001, marked by high unemployment and the bursting of the dot-com bubble.

Consumer Spending

The total amount of money spent by households in an economy on goods and services over a time period.

Investment Spending

Expenditures on physical assets like property, industrial buildings, or equipment, which are intended to create future benefits such as increased production capacity or efficiency.