Question

Which of the following activities increase and decrease the non-current assets available to a company?

a) warehousing activities
b) financing activities
c) investing activities
d) operating activities

Answer 1

Warehousing and financing activities do not directly impact non-current assets, but investing and operating activities can both increase and decrease non-current assets.

Step-by-step explanation:

Warehousing activities and financing activities do not directly impact the non-current assets available to a company. However, investing activities and operating activities can both increase and decrease non-current assets.

Investing activities involve the acquisition and disposal of long-term assets, such as property, plant, and equipment. If a company purchases new equipment or sells off old equipment, it will impact the non-current assets available.

Operating activities, on the other hand, are the day-to-day activities of a business. Non-current assets can be increased through operating activities, for example, if a company generates profits and reinvests them in purchasing long-term assets.