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:

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced, indicating the average cost per unit of output.

FedEx

An American multinational delivery services company known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location.

Package Tracking

A service provided by postal and courier companies that allows customers to follow the geographic location and status of their shipped items through a unique tracking number.

Short Run

A time period in economic theory during which some factors of production are fixed, affecting the decision-making process of businesses.