Which of the following is an example of investing?

Disable ads (and more) with a membership for a one time $4.99 payment

Study for the Texas Aandamp;M University (TAMU) ACCT229 Exam. Get exam-ready with flashcards, detailed explanations, and multiple choice questions. Enhance your understanding and boost your confidence!

The correct response describes buying or selling long-term assets, which is a fundamental activity in investing. Investing activities are primarily focused on the acquisition and disposal of physical or non-physical assets that a company intends to use for more than one year. This includes purchasing property, equipment, or vehicles, as well as the sale of these assets when no longer needed.

Long-term assets are crucial for businesses as they contribute to generating revenue over time. Investment in such assets is essential for growth and operational capacity, thus making this option a clear example of an investing activity. The other choices represent various forms of cash flow but fall under different categories, such as operating or financing activities, which do not specifically relate to the acquisition or sale of long-term assets.