Asked by
Ireland Horvat
on Nov 15, 2024Verified
Transactions involving the purchase and sale of fixed assets would be considered:
A) buying and selling activities.
B) financing activities.
C) operating activities.
D) investing activities.
Fixed Assets
Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the short term, such as property, plant, and equipment.
Investing Activities
Activities such as purchase and sale of plant and equipment and placing excess cash in stocks, bonds, and notes of other companies.
Purchase
A Purchase refers to the acquisition of goods or services in exchange for money, contributing to the assets or expenses of a business.
- Segment and recognize cash flow operations under operating, investing, and financing categories.
- Acknowledge the cash inflows and outflows inherent in operating, investing, and financing activities.
Verified Answer
CR
Learning Objectives
- Segment and recognize cash flow operations under operating, investing, and financing categories.
- Acknowledge the cash inflows and outflows inherent in operating, investing, and financing activities.