A Use of Cash for Investing Activities Is ________

question 1

Multiple Choice

A use of cash for investing activities is ________.

• A)payment of an account payable
• B)payment of dividends
• C)cash used to buy equipment
• D)cash used to purchase treasury stock

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking a different action.

Variable Cost

Costs that directly correspond with the degree of production or output levels.

Period Costs

Costs that are not directly tied to production and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government, including balance sheets, income statements, and cash flow statements.