Question

Acquiring assets necessary to operate the business is called a(n):

A) Financing activity.
B) Operating activity.
C) Revenue activity.
D) Investing activity.

Answer 1

Acquiring assets necessary to operate the business is called an investing activity.

Step-by-step explanation:

The correct answer is D) Investing activity.

Acquiring assets necessary to operate the business is called an investing activity. Investing activities involve purchasing or acquiring assets such as machinery, buildings, or equipment that are necessary to run the business operations.