Which of the Following Items Should a Company Report Directly

question 45

Multiple Choice

Which of the following items should a company report directly in its monthly cash budget?

• A) Cash proceeds from selling one of its divisions.
• B) Accrued interest on zero coupon bonds that it issued.
• C) New shares issued in a stock split.
• D) New shares issued in a stock dividend.
• E) Its monthly depreciation expense.

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Definitions:

Gratuitous Assignment

The transfer of rights or property from one party to another without any exchange of value or consideration.

Assignee's Assent

The agreement or acceptance by the assignee to accept the terms and conditions of an assignment.

Valid

Having legal force, binding, or enforceable; conforming to the law or to established legal forms and requirements.

Donee Beneficiaries

Individuals or entities intended by the parties in a contract to receive benefits from the agreement's performance without being directly involved in the contract.