Each of the Following Items May Be Classified as Operating

question 59

Multiple Choice

Each of the following items may be classified as operating or financing activities under IFRS except

• A) dividends paid.
• B) dividends received.
• C) interest paid.
• D) All of these answer choices may be classified as such.

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Definitions:

Work in Process

A category of inventory representing items currently being manufactured but not yet completed.

Direct Labor

The wages and other costs for labor directly involved in the production of goods or services, excluding indirect labor costs.

Standard Costs

Predetermined costs for materials, labor, and overhead, against which actual costs are compared.

Cost of Goods Sold

Expenses directly associated with producing goods a company sells, entailing labor and material costs.