Western Governors University (WGU) ACCT3340 D215 Auditing Practice Exam

Investing activities are primarily concerned with the acquisition and disposal of long-term assets that are intended to be used in the operations of the business. This includes transactions related to the purchase and sale of physical assets such as land, buildings, and equipment. When a company invests in these types of assets, it is making expenditures expected to yield benefits over a prolonged period, reflecting a focus on long-term growth and operational capabilities.

In the context of financial statements, these activities are reflected in the cash flow from investing section, which details how much money is spent on long-term assets and how much is generated from their sale. This aspect of investing activities is critical for understanding a company's strategy and resource management, as these investments often signify confidence in future business performance.

Other options refer to different financial activities that do not align with the typical definition of investing activities. For instance, short-term assets involve current asset management rather than long-term investments, while issuing and repaying debt pertains to financing activities. Cash flow management is a broader concept that encompasses various financial activities rather than exclusively focusing on the purchase and sale of long-term assets.