Which of the Following Transactions Would Be Shown in the Non-Cash

question 6

Multiple Choice

Which of the following transactions would be shown in the non-cash investing and financing activities section of the cash flow statement?

• A)Sold equipment with book value of $4 000 in exchange for $1 000 cash and a $3 000 bill
• B)Purchased a building in exchange for 10 000 ordinary shares
• C)Borrowed $22 000 cash on a bill payable
• D)Issued 10 000 shares at $5 per share

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Definitions:

Supply And Demand

Fundamental economic principle that describes how the availability of goods (supply) and the desire for them (demand) determine their price.

Acreage Allotment Program

A governmental policy aimed at controlling crop production by limiting the acres that can be cultivated, historically used in the US to support agricultural prices.

Taxpayer-Subsidized

Financial support provided by the government to individuals or organizations, funded by taxpayers.

Price-Support Program

Government policies designed to maintain the price of a commodity at a certain level through subsidies or purchase of the market surplus.