Which of the Following Is an Investing Activity

question 47

Multiple Choice

Which of the following is an investing activity?

• A)Payment of salaries.
• B)Purchase of inventory.
• C)Sale of an investment at FVPL
• D)Collection of loan receivable.

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Definitions:

Land

A non-depreciable asset representing the earth's surface that a business owns for operation purposes.

Intangible Asset

An Intangible Asset is a non-physical asset possessed by a company, such as intellectual property, goodwill, and licenses, offering future economic benefits.

Goodwill

When a business is purchased, the difference between the price paid and the fair value of the net assets is goodwill. Goodwill may depend on brand names, business location, service, or other elements; it is a valuable asset that plays an important part in the expected rate of future earnings of a business.

Natural Resource

Refers to resources found in nature that are used for economic gain, such as minerals, forests, water, and land.