In Shannon Company, There Was an Increase in the Land

question 203

Multiple Choice

In Shannon Company, there was an increase in the land account during the year of $38,000. Analysis reveals that the change resulted from a cash sale of land at a cost $120,000, and a cash purchase of land for $158,000. In the statement of cash flows, the change in the land account should be reported in the investment section:

• A) as a net purchase of land, $38,000.
• B) only as a purchase of land $158,000.
• C) as a purchase of land $158,000 and a sale of land $120,000.
• D) only as a sale of land $120,000.

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Definitions:

Statistical Relationship

A connection between two or more variables, where changes in one variable are associated with changes in another, as determined through statistical analysis.

Correlation Coefficients

Statistical measures that describe the size and direction of a relationship between two or more variables.

Weakest Degree

Refers to the most minimal or lowest level of intensity in any given scale or measurement.

Relationship

A connection, association, or involvement between people, which can range from friendships and family ties to romantic and professional interactions.