00:01
In order to decide which of the following four activities would count in the investing section, we first should go over the basics of what counts as investment.
00:10
So what counts as investment? so first, investments need to be cash transfers or payments, so cash payments.
00:19
And they also need to be payments for the purchase of land, buildings, equipment.
00:27
Let's just put some categories.
00:28
So land, buildings, equipment, machinery, things like this.
00:36
So physical capital that we invest in that will help us with production in the future.
00:41
So they're not just cash transfers or dividends paid.
00:46
They're physical capital investments.
00:49
Right.
00:49
So of the four, we can immediately eliminate b, right, because sales of product for cash, that's not an investment.
00:56
That's just revenue...