The Following Item Would Be Classified as an Investing Activity

question 8

Multiple Choice

The following item would be classified as an investing activity on the statement of cash flows:

• A)Proceeds from borrowing.
• B)Sale of goods.
• C)Sale of property.
• D)Payment to lenders.

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Definitions:

National Saving

The total amount saved within a country in a given time period, typically considered as the sum of private and public savings.

Investment

The practice of apportioning financial resources aimed at generating earnings or profits.

Private Saving

The portion of households' income that is not spent on consumption or taxes, often put aside for future use or investment.

Private Saving

The amount of income that households save after accounting for their spending and taxes.