Investing activities include all of the following except: Select one or more: a. Payment of debt....

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Investing activities include all of the following except: Select one or more: a. Payment of debt....

Investing activities include all of the following except: Select one or more: a. Payment of debt. b. Collection of loans. c. Making of loans. d. Sale of available-for-sale and held-to-maturity securitie

business accounting

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Answer 1

Answer #1

Answer:

Correct Option: Option a i.e. Payment of Debt.

Investing Activities includes change in Non-Current Assets i.e. Sale / Purchase of Fixed Assets or Investments. Collection of Loan, Making of Loan, Sale of available for sale and held to maturity securities are amount invested / cash collection from investments.

Whereas Financing Activities includes change in funding i.e. Issuance of Common Stock, Retirement of bonds, Payment of Debt etc.

Therefore, Payment of Debt is an Financing Activiites whereas other activities are Investing Activities.

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Answer 2

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