Which Balance Sheet Accounts Are Most Affected by Investing Activities

question 113

Multiple Choice

Which balance sheet accounts are most affected by investing activities?

• A)Current assets and current liabilities
• B)Long-term assets
• C)Long-term liabilities
• D)Stockholders' equity

---

Definitions:

Gross Margin Percentage

A financial metric that measures a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS).

Return On Equity

A financial ratio indicating the profitability of a firm in relation to its shareholders' equity, measuring how much profit is generated from the equity.

Return On Equity

calculates the amount of net income returned as a percentage of shareholders equity, measuring a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Common Stock

A form of equity security signifying an ownership stake in a company, granting the holder the right to participate in voting on corporate issues and to earn dividends.