Question

Name the activities that is related to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc.?

Options

• Operating activities

• Investing activities

• Financing activities

• None of the above

Answer 1

Investing activities

Explanation:

Investing operations include the purchase and selling of long-term assets such as machinery, furniture, land, and buildings, among other things. Long-term investment transactions are also investing activities. Investing operations, according to AS-3, are the acquisition and sale of long-term assets and other investments that are not cash equivalents.