Which of the Following Would Be Considered an Investing Activity

question 87

Multiple Choice

Which of the following would be considered an investing activity and a source of cash?

• A)Purchase of equipment
• B)Sale of Dillard's stock held as an investment
• C)Issuance of corporate stock
• D)Receipt of interest on savings account

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Definitions:

Noncumulative

Noncumulative refers to dividends on preferred stock that, if not declared or paid in a given period, do not accumulate and are not owed to shareholders in future periods.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, granting them rights to dividends and votes on company matters.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.