Transactions Involving the Purchase and Sale of Fixed Assets Would

question 106

Multiple Choice

Transactions involving the purchase and sale of fixed assets would be considered:

• A) buying and selling activities.
• B) financing activities.
• C) operating activities.
• D) investing activities.

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Definitions:

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings.

Expense Account

An accounting category used for tracking money spent on operating activities of a business.

Repainting

Repainting involves updating or applying a fresh coat of paint to an object or area to enhance its appearance or protect it from damage.

Straight-Line Depreciation

A method of calculating the depreciation of an asset where the expense is evenly allocated over its useful life.