During the year, a business engaged in the following transactions:
a. Borrowed money from a lender (for example, a bank)
b. Purchased products that it put in inventory to be sold to customers at a later date
c. Bought new delivery trucks that will be used for several years
d. Sold to customers products that had been held in inventory
For each transaction, identify which type of transaction it is according to the four basic types:
• Profit-making activities (sales and expenses)
• Set-up and follow-up transactions for sales and expenses
• Investing activities
• Financing activities
Purchasing and constructing assets that have multi-year lives are long-term investments, which are classified as investing activities.