Investing Activities Include

question 118

Multiple Choice

Investing activities include

• A)purchases and sales of property and equipment.
• B)loans made and collected.
• C)purchase and sales of another company's stock.
• D)All of these answer choices are correct.

---

Definitions:

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of credit sales that are not expected to be collected.

Terms 2/10 N/30

A common payment term in business indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days; otherwise, the full invoice price is due in 30 days.

Merchandise Returns

Goods returned by the buyer to the seller, often due to defects, dissatisfaction, or other reasons, leading to a reversal of the sale.

Cash Realizable Value

The net amount of cash expected to be received from receivables, after adjusting for any allowances for doubtful accounts.