Investing Activities Include

question 43

Multiple Choice

Investing activities include

• A) purchases of merchandise for cash.
• B) purchases of plant and equipment for cash.
• C) purchases of prepaid expense items such as supplies and insurance for cash.
• D) increase in accounts receivable.

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Definitions:

Cost of Goods Available

The total cost of inventory that is available for sale during a given period.

Net Operating Income

The earnings from a company's core business operations, indicating the efficiency in managing its operational costs.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left and credits on the right, to track the balance of each account.

Manufacturing Overhead

The indirect costs associated with manufacturing, covering expenses like maintenance, utilities, and staff salaries not directly involved in production.