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

question 79

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)Issued 10 000 shares at $5 per share
• C)Purchased land for a $20 000 deposit and a mortgage payable of $180 000
• D)Settled a long-term bill payable by issuing ordinary shares

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Definitions:

Consumer Goods

Consumer Goods are products bought for consumption by the average consumer, distinguishing them from items used in production of other goods or services.

Capital Goods

Long-term assets like buildings, machinery, and equipment used in the production of goods and services.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Computer Simulation

The use of computer models to replicate the behavior of complex systems under various scenarios, often for analysis or prediction.