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:

Tenth Amendment

An amendment to the United States Constitution that emphasizes the federal system of government by stating that powers not delegated to the federal government nor prohibited to the states, are reserved to the states or to the people.

Federal System

A system of government where power is divided between a central (or federal) government and regional (state or provincial) governments.

Governmental Responsibilities

Duties and obligations that a government is expected to carry out for the benefit of its citizens, including providing public services, ensuring national security, and upholding the law.

Federal Arrangement

A political system where power is divided between a central government and various regional governments.