Which of the Following Transactions Is Not Reported in the Statement

question 71

Multiple Choice

Which of the following transactions is not reported in the statement of cash flows as a cash flow from investing activities?

• A)Selling a depreciable asset for cash at a loss.
• B)Purchasing a patent using cash.
• C)Purchasing land in exchange for common stock.
• D)Purchasing shares of common stock of another company using cash.

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Definitions:

Commission

A service fee charged by a broker or agent for facilitating transactions, such as in stocks or real estate.

Monthly Interest Charges

The amount of interest that accrues on a loan or debt and is payable on a monthly basis.

Sarbanes-Oxley Act

A United States federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms, aiming to protect investors from fraudulent financial reporting.

PCAOB

The Public Company Accounting Oversight Board, an organization established to oversee the audits of public companies to protect the interests of investors.