Which of the Following Will Be Categorized as an Investing

question 157

Multiple Choice

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

• A) Purchase of land with a mortgage
• B) Cash paid for purchase of new machinery
• C) Cash paid for purchase of office supplies
• D) Cash received from issuance of shares of common stock

---

Definitions:

Total Cost

The aggregate expenditure involved in creating a product or service, including all variable and fixed costs.

Construction Cost

The total expenses incurred during the building of a structure, including materials, labor, and other related costs.

Operating Cost

Expenses associated with the day-to-day running of a business, excluding the cost of goods sold.

Soft Infrastructure

Non-physical infrastructure, including institutions, human capital, and societal systems that support economic activities.