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

question 116

Multiple Choice

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

• A) Purchase of treasury stock
• 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:

True Bargains

Deals that are genuinely advantageous, offering good value for the money paid.

Legal Consideration

Something of value, which can be a promise, service, or object, exchanged between parties as part of a contract.

Refrain From Alcohol

An advisory or mandate to abstain from consuming alcoholic beverages.

Consideration Requirement

The legal principle that a contract must involve a bargain or exchange of value between the parties to be enforceable.