Which of the Following Would Be Considered an Operating Asset

question 196

Multiple Choice

Which of the following would be considered an operating asset in return on investment computations?

• A) Land being held for plant expansion.
• B) Treasury stock.
• C) Accounts receivable.
• D) Common stock.

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Definitions:

Financing Activities

Transactions related to raising and repaying capital, such as issuing stocks or bonds and paying dividends.

Net Cash

The amount of cash that is available after all debts and expenses have been paid.

Investing Activities

Transactions involving the acquisition or sale of long-term assets and other investments not included in cash equivalents.

Statement Of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.