Significant Noncash Transactions Would Not Include

question 183

Multiple Choice

Significant noncash transactions would not include

• A) conversion of bonds into common stock.
• B) asset acquisition through bond issuance.
• C) treasury stock acquisition.
• D) exchange of plant assets.

---

Definitions:

Securities

Securities that signify ownership in a publicly-listed company (stock), a debt obligation to a government entity or a company (bond), or entitlements to ownership conveyed through an option.

Legal Reserves

Legal reserves are funds that financial institutions are required to hold in reserve against deposits made by their customers, as dictated by regulatory authorities.

Vault Cash

Physical money that is held in banks' vaults and ATMs, used to meet the bank's obligations to depositors.

Federal Reserve Bank

One of the 12 regional banks that, together with the Board of Governors, make up the Federal Reserve System, which serves as the central banking system of the United States.