Which of the following is an investing activity? (2024)

Which of the following is an investing activity?

Investing activities include purchases of long-term assets (such as property, plant, and equipment), acquisitions of other businesses, and investments in marketable securities (stocks and bonds).

What is an investing activity quizlet?

Investing activities include the purchase or sale of long-lived assets used in operating the business, or the purchase or sale of investment securities. What are financing activities? The primary types of financing activities are borrowing money, issuing shares of stock, and paying dividends.

What is an investing activity?

In accounting, investing activities refers to the purchase and sale of long-term assets and other business investments within a specific reporting period. Investing activities are, in fact, one of the main categories of cash activities that your business would be reporting on its cash flow statement.

Which of the following is an investing activity for Patagonia?

- purchasing manufacturing equipment is an investing activity for patagonia.

Which of the following activities is classified as an investing activity?

Investing activities involve the purchase and sale of long-term fixed assets, long-term investments, accepting notes receivable, lending loans, and few other investments other than in cash and cash equivalents. The cash flows from investing activities are recorded in the second section of the cash flow statement.

Is interest an investing activity?

Interest and dividends received or paid are classified in a consistent manner as either operating, investing or financing cash activities. Interest paid and interest and dividends received are usually classified in operating cash flows by a financial institution. taxes are generally classified as operating activities.

Are shares an investing activity?

Common activities that must be reported as investing activities are purchases of property, plant and equipment, shares, and bonds, while financing activities normally relate to the business' funding sources, namely, creditors (debt) and investors (equity).

Are dividends an investing activity?

Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents, and the receipt of interest and dividends.

Which is an example of investing cash flow?

Cash inflows (proceeds) from investing activities include:

Cash receipts from interest and dividends received as returns on loans (except for program loans), debt instruments of other agencies, equity securities, and cash management or investment pools.

What is the formula for investing activities?

Cash flow from investing activities formula:

There isn't a singular agreed-upon formula, but the following formula is generally accepted: Cash flow from investing activities = CapEx/purchase of non-current assets + marketable securities + business acquisitions - divestitures.

Is the purchase of supplies an investing activity?

The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.

Is purchase of equipment an investing activity?

The purchase or sale of a fixed asset like property, plant, or equipment would be an investing activity.

What activity is selling investments?

Investing activities are one of the main categories of net cash activities that businesses report on the cash flow statement. Investing activities in accounting refers to the purchase and sale of long-term assets and other business investments, within a specific reporting period.

Which of the following activities would not be considered an investing activity?

Answer and Explanation: The correct answer is A. Issuance of common stock. The issuance of common stock is a financing activity, not an investing activity.

Which of the following can be considered an investment?

An investment can refer to any mechanism used for generating future income. This includes the purchase of bonds, stocks, or real estate property, among other examples. Additionally, purchasing a property that can be used to produce goods can be considered an investment.

Which of the following is an investing activity on the statement of cash flows?

Investing activities are the acquisition or disposal of long-term assets. This can include the purchase of a company vehicle, the sale of a building, or the purchase of marketable securities. Because these items involve the long-term use of cash, they are reported in the investing section of the cash flow statement.

Are loans part of investing activities?

Cash flows from investing activities include making and collecting loans (except program loans; see Cash Flows from Operating Activities) and the acquisition and disposition of debt or equity instruments.

Which of the following is a cash flow from investing activities?

The cash flow from investing activities section includes cash generated from selling assets (such as equipment or land), receipt of moneys loaned to vendors, and any monies used in making a large investment, such as in a company purchase or merger.

Is loss on sale of equipment an investing activity?

Answer and Explanation: When a company sells a piece of equipment, the actual cash received for this would be recorded in the investing section of the statement of cash flows. If there is a gain or a loss, this is recorded in the operating section.

Is issuing bonds a financing activity?

Yes, the issuance of bonds by a company is a financing activity. Financing activities are cash flows between a business, its owners, and its creditors. Issuing bonds is a cash exchange between a company and a creditor.

What are dividend activities?

Dividends Activity. Dividends are a portion of a company's profits that are paid to shareholders. Newer, or start- up companies usually do NOT pay dividends because they use their profits to help their businesses grow --- building a bigger factory, hiring more workers, expanding into new markets, etc.

Is paying salaries an operating activity?

Answer and Explanation: It is true that the payment of salaries and wages would be reported as an operating activity on the statement of cash flows. Salaries and wages, along with purchases of supplies, inventory, or paying utility bills, are all operating cash outflows.

What is an example of an investing activity on a statement of cash flows quizlet?

The receipt of loan repayments is an investing activity on the statement of cash flows.

What is the difference between operating activities and investing activities?

Operating activities include cash activities related to net income. Investing activities include cash activities related to noncurrent assets.

What are operating activities examples?