Use This Information to Answer the Following Question

question 44

Multiple Choice

Use this information to answer the following question.

Oconee Corporation is preparing a statement of cash flows. The following transactions occurred during the year:

1. Sold machinery for $18,000 cash.
2. Purchased a building for $160,000 cash.
3. Issued $140,000 worth of stock to acquire an airplane.
4. Converted long-term bonds by issuing $200,000 worth of stock.
5. Declared and paid a $20,000 cash dividend.

Transaction 5 would be found on the statement of cash flows in the

• A) noncash investing and financing transactions section.
• B) cash flows from financing activities section.
• C) cash flows from operating activities section.
• D) cash flows from investing activities section.

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Definitions:

Modifies Action

An adjustment or change in behavior or approach to achieve a desired outcome more effectively.

Synergistic Effect

The interaction of multiple elements that produces a total effect greater than the sum of individual effects.

Toxic Effects

The harmful and potentially dangerous side effects caused by substances, chemicals, or medications when ingested, inhaled, or absorbed.