All of the Following Are Investing Activities EXCEPT

question 40

Multiple Choice

All of the following are investing activities EXCEPT

• A) earning interest income.
• B) purchasing property, plant, and equipment.
• C) purchasing other companies' shares.
• D) selling property, plant, and equipment.

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Definitions:

Accruals

Accounting adjustments for revenues that have been earned or expenses that have been incurred but have not yet been recorded through a cash transaction.

Accrual Accounting

Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Cash Basis Accounting

An accounting method recording transactions when cash is received or paid, irrespective of when revenues or expenses were incurred.

Adjusting Entries

End-of-period accounting insertions to correctly allocate revenues and costs to the specific timeframe in which they occurred.