Which of the Following Transactions Would Create an Increase in Cash

question 54

Multiple Choice

Which of the following transactions would create an increase in cash from a financing activity?

• A)Issuing shares of common stock to stockholders in exchange for cash.
• B)Selling a short-term stock investment in exchange for cash.
• C)Selling used equipment,which was a part of property and equipment,for cash.
• D)The payment of an account payable.

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Definitions:

Choledochotomy

a surgical incision into the common bile duct, typically to remove gallstones.

Gastrectomy

A surgical procedure for the partial or total removal of the stomach.

Glossectomy

A surgical procedure involving partial or total removal of the tongue, usually to treat cancer.

Duodenum

The first section of the small intestine, immediately beyond the stomach, which plays a critical role in digestion by receiving bile and pancreatic juices.