Question

Investing activities usually involve long-term liability and stockholders' equity accounts?

1) True
2) False

Answer 1

Investing activities do not usually involve long-term liability and stockholders' equity accounts.

Step-by-step explanation:

False. Investing activities usually involve long-term assets such as property, plant, and equipment, as well as other long-term assets like investments in stocks and bonds. These activities are reflected in the investing section of the statement of cash flows. The liability and stockholders' equity accounts are not directly involved in investing activities.