Which of the Following Transactions Would Not Be Classified as a Financing

question 139

Multiple Choice

Which of the following transactions would not be classified as a financing activity?

• A) Purchase of treasury shares
• B) Payment of dividends
• C) Issuance of bonds at a discount
• D) Purchase of a long-term investment in bonds

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Definitions:

Monthly

Pertains to something occurring, produced, or settled every month.

Annual Discount Rate

The rate used to discount future cash flows to the present value, reflecting the time value of money and investment risk.

Receiving Annually

Refers to receiving a particular sum or type of benefit every year.

Perpetually

Continuing forever or for an indefinite period without anticipated termination.