Transactions of a Company That Include the Purchase and Sale

question 6

Multiple Choice

Transactions of a company that include the purchase and sale of long-term productive assets are referred to as:

• A)Investing activities.
• B)Financing activities.
• C)Expenditure activities.
• D)Operating activities.

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Definitions:

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs produced to inputs used.

Hourly Wage

The hourly wage an employee receives for their work.

Equilibrium Purchase Price

The price at which the quantity of goods demanded by consumers equals the quantity of goods supplied by producers.

Marginal Product

The boost in production resulting from one more unit of input, while keeping other inputs unchanged.