Which of the Following Would Result When a Company Purchases

question 65

Multiple Choice

Which of the following would result when a company purchases a factory building using cash?

• A)A noncurrent asset and an investing cash flow are created.
• B)A noncurrent asset and a financing cash flow are created.
• C)A current asset and an investing cash flow are created.
• D)A current asset and a financing cash flow are createD.Buildings are classified as noncurrent assets.Investing cash flows are created with the purchase or sale of noncurrent assets.

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Definitions:

High Market Growth Rates

Describes markets that are expanding rapidly, with increasing sales and consumer interest, often providing lucrative opportunities for businesses.

Relative Market Shares

A metric comparing a company's market share to that of its largest competitor, indicating competitiveness in a market.

Growth-Share Matrix

A strategic tool used for portfolio analysis, categorizing a company’s business units or products into four quadrants based on market growth rate and relative market share.

Tortoises

Slow-moving, terrestrial turtles often characterized by a dome-shaped shell and long lifespan.