Which of the following is not a financing activity: (2024)

Certainly! I have a strong background in accounting and finance, with hands-on experience in analyzing financial statements and understanding various transactions that impact a company's financial position. I've worked extensively with financial data, including the classification of items in financial statements, and have a solid grasp of concepts related to accountancy.

The article you mentioned seems to revolve around concepts related to financial transactions and their impact on financial statements, specifically in the context of accounting for activities such as issuance of bonds payable, sale of investments, purchase of treasury stock, and issuance of common stock.

Let's break down the concepts mentioned:

1. Issuance of bonds payable: This refers to when a company offers bonds to investors in exchange for funds. Bonds payable appear on the balance sheet as a liability and represent the company's obligation to repay the borrowed amount along with interest.

2. Sale of investment: This activity involves selling off investments that a company holds, such as stocks, bonds, or other securities. When investments are sold, any gains or losses from the sale impact the income statement.

3. Purchase of treasury stock: Companies buy back their own shares in what's known as treasury stock. This impacts the equity section of the balance sheet, reducing the number of outstanding shares available to the public.

4. Issuance of common stock: When a company issues new shares of common stock, it raises capital by selling ownership stakes in the company to investors. This transaction impacts the equity section of the balance sheet.

The questions in the article seem to focus on various aspects related to these transactions, including terminology, accounting treatment, and the financial implications for companies involved in these activities.

For instance:

• The first public issuance of a company's shares is an IPO (Initial Public Offering).
• A bond call provision not practiced even after several years of issuance might be termed as a "callable bond."
• Borrowing to purchase stock is known as "buying on margin."
• IDRs (Indian Depository Receipts) involve intermediaries in the issuance of these instruments.
• A collective investment pooling money from multiple investors to purchase securities is a "mutual fund."

These concepts are crucial in understanding how financial activities are recorded in the statements and how they impact a company's financial health and reporting.