Which of the Following Would Not Represent a Financing Activity

question 115

Multiple Choice

Which of the following would not represent a financing activity?

• A) Paying dividends to stockholders.
• B) An investment of capital by the owners.
• C) Borrowing money from a bank to purchase new equipment.
• D) Buying supplies on account.

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Definitions:

Allocated General Overhead

The portion of indirect costs assigned to a particular production process, product, or department.

Variable Costs

Expenditures that directly correspond with production levels or the amount of sales.

Fixed Costs

Expenses that remain constant regardless of the level of production or business activity.

Suspension of Operations

The temporary halt of business activities or operations, which can be due to a variety of reasons, including economic downturns or emergencies.