Which of the Following Is NOT Classified as a Financing

question 42

Multiple Choice

Which of the following is NOT classified as a financing activity?

• A) share buybacks
• B) dividend payments
• C) sale of equipment
• D) borrowing from a finance company.

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Definitions:

Materials Purchased

The total cost of raw materials bought for production purposes during a specific accounting period.

Cost of Goods

The total expense incurred in the production of goods sold by a company, including raw materials and labor costs.

Income Statement

A financial statement that details a company's revenues and expenses over a specific period, showing the net profit or loss.

Administrative Expenses

Expenses related to the general operation of a business, like salaries of executive personnel, accounting department costs, and legal fees.