Each of the Following Is an Example of a Significant

question 83

Multiple Choice

Each of the following is an example of a significant noncash activity except

• A) conversion of bonds into common stock.
• B) exchanges of plant assets.
• C) issuance of debt to purchase assets.
• D) stock dividends.

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Definitions:

Income

The total money received by an individual or household over a specified time period, including wages, salaries, benefits, and other earnings.

Positive Economic Statement

An objective statement based on facts that can be tested or validated, focusing on descriptions of what is rather than what ought to be.

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.