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:

Direct Materials Quantity Variances

The variance that occurs when the actual quantity of materials used in production differs from the expected quantity.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

ABC

A method of identifying and assigning costs to specific activities to improve cost accuracy and managerial decision-making.

Special Materials

Materials that are uncommon, difficult to procure, or used in specialized applications.