Question

Determine if the following are operating, investing, financing, or noncash activities: 100 shares of XYZ Corporation common stock are purchased for cash?

1) Operating
2) Investing
3) Financing
4) Noncash

Answer 1

When a company purchases 100 shares of XYZ Corporation common stock for cash, it falls under the Investing category.

Step-by-step explanation:

When a company purchases 100 shares of XYZ Corporation common stock for cash, it falls under the Investing category.

Investing activities involve the acquisition or sale of long-term assets, such as stocks, bonds, or property, that are not directly related to the company's daily operations.

By purchasing the shares of the XYZ Corporation, the company is making an investment with the expectation of earning a return in the form of dividends or capital gains.