Selected Transactions of Rudiment Inc

question 64

Essay

Selected transactions of Rudiment Inc., a public corporation, reporting under IFRS, are listed below:
1. Furniture was sold for cash.
2. Inventory purchased for cash.
3. Bond investment receivable was collected.
4. Equipment was acquired by signing a 5-year lease agreement.
5. Dividends were paid in cash.
6. Issued 10,000 common shares to acquire land.
7. Accounts payable were paid.
8. Paid one-year of insurance in advance.
9. Repaid a portion of the company's long-term mortgage payable.
10. Collected accounts receivable.
Instructions
Classify each transaction as either
a) an operating activity,
b) an investing activity,
c) a financing activity, or
d) a noncash investing and financing activity.

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Definitions:

Total Cost

The sum of all costs associated with the production of a specific quantity of a good or service, including both fixed and variable costs.

ATC

Average Total Cost, a financial metric calculated by dividing total cost by the quantity of output produced, illustrating the average cost per unit of output.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output produced.

AFC

Average Fixed Cost, the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity produced.