Which of the Following Would Be Considered an Investing Activity

question 189

Multiple Choice

Which of the following would be considered an investing activity on the statement of cash flows?

• A)An issuance of stock
• B)A sale of equipment
• C)Payment of dividends
• D)Purchase of inventory

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Definitions:

Inventory and Cost of Goods Sold

Represents the goods available for sale during a period and the cost associated with those goods that have been sold.

Inventory Damage

Inventory damage refers to the physical harm or deterioration of inventory items, which can lead to loss of value or usability for sale.

Inventory Valuation Method

A system or approach used to assess the monetary value of inventory on hand at the end of an accounting period, affecting cost of goods sold and net income.

Tax Advantage

A financial benefit given by government regulations that reduces taxes for businesses and individuals.