Which of the following events is not an investing activity? 1 point The repayment of a building mortgage. The purchase of land. Payment to the equipment supplier. The purchase of marketable securities.
Question
Which of the following events is not an investing activity? 1 point The repayment of a building mortgage. The purchase of land. Payment to the equipment supplier. The purchase of marketable securities.
Solution
The repayment of a building mortgage is not an investing activity. This is because it is considered a financing activity. Financing activities are transactions involving long-term liabilities, owner's equity (including the payment of dividends) and changes to short-term borrowings.
Investing activities, on the other hand, include purchases of physical assets, investments in securities, or the sale of securities or assets. So, the purchase of land, payment to the equipment supplier, and the purchase of marketable securities are all examples of investing activities.
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