Which of the Following Would Be an Example of an Investing

question 69

Multiple Choice

Which of the following would be an example of an investing activity on the Statement of Cash Flows?

• A) purchase of capital assets
• B) sale of preferred shares
• C) repurchase of shares issued
• D) dividends paid to shareholders

---

Definitions:

Unit Product Cost

The total cost to produce a single unit of product, including direct materials, direct labor, and allocated overhead.

Direct Labor Cost

The expense of labor that can be directly attributed to the production of goods or services.

Net Operating Income

A company's revenue minus its operational direct and indirect costs, excluding taxes and interest.

Net Operating Income

Earnings from a company's regular activities before taxes and interest, used to gauge the company's operational efficiency.