An Example of an Investing Activity Is

question 34

Multiple Choice

An example of an investing activity is:

• A)Paying wages of employees.
• B)Dividends paid by the company.
• C)Purchase of land.
• D)Selling inventory.
• E)Contributions from stockholders.

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Definitions:

Investment

The allocation of resources, usually money, into assets with the expectation of generating income or profit in the future.

Budget Surplus

The situation where a government's income exceeds its expenditures within a given time period, enabling savings or debt reduction.

Private Saving

The portion of disposable income that households save rather than spend on consumption.

National Saving

The sum of private and public savings in a country, representing total income not spent on consumption or government expenditures.