Purchases and Sales of Non-Current Assets Are Examples Of

question 118

Multiple Choice

Purchases and sales of non-current assets are examples of:

• A) investing activities
• B) dividend activities
• C) financing activities
• D) operating activities

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Definitions:

Internal Rate

Typically refers to the internal rate of return (IRR), a discount rate that makes the net present value (NPV) of all cash flows from a project or investment equal to zero.

Annual Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business over a year.

Investment Costing

The process of determining the total costs associated with making an investment.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a specific product.