Which of the Following Transactions Is Not Included in Investing

question 18

Multiple Choice

Which of the following transactions is not included in investing activities in the statement of cash flows?

• A) Receipt of repayment of loans and advances.
• B) Purchase of fixed assets.
• C) Loans and advances made.
• D) Repayment of debts.

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Definitions:

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including items like rent, salaries, and insurance.

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, which contributes towards covering fixed costs and generating profit.

Cost Volume Profit Graph

A graphical representation that shows how changes in cost, volume, and profit affect a company's financial situation.

Break-Even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.