Question

Investing activities involve the acquisition and sale of

a) nonoperating investing assets.
b) inventories sold in normal operations.
c) long-lived assets used in business operations.

Answer 1

Investing activities involve the acquisition and sale of long-lived assets used in business operations.

Step-by-step explanation:

Investing activities involve the acquisition and sale of long-lived assets used in business operations. These assets can include buildings, machinery, vehicles, and technology equipment that are necessary for a company to carry out its day-to-day operations. For example, when a company buys a new office building or upgrades its manufacturing equipment, it is engaging in investing activities. On the other hand, inventories sold in normal operations are part of a company's operating activities, not investing activities.