Which of the Following Will Be Categorized as an Investing

question 81

Multiple Choice

Which of the following will be categorized as an investing activity on the statement of cash flows?

• A)depreciation expense on production equipment for the year
• B)cash paid for purchase of new machinery
• C)cash paid for purchase of raw materials
• D)cash received from issue of shares

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Definitions:

Revenue

Revenue refers to the total income generated from the sale of goods or services by a company before any expenses are subtracted.

Elastic Demand

A market condition where the demand for a product or service significantly changes in response to changes in its price.

Long-Run

A period in which all factors of production and costs are variable, allowing companies the flexibility to make changes in production capacity and operations.

Few Substitutes

Refers to a market condition where there are not many alternative products or services available to consumers, which often leads to less competition and higher prices.