Which of the Following Transactions Would Be Shown in the Noncash

question 99

Multiple Choice

Which of the following transactions would be shown in the noncash investing and financing activities section of the statement of cash flows?

• A) Sold equipment with book value of $4,000 in exchange for $1,000 cash and a $3,000 note
• B) Settled a long-term note payable by issuing common stock
• C) Issued 10,000 shares of stock at $5 per share
• D) Purchased land for a $20,000 down payment and a mortgage note for $180,000

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Definitions:

Stock Certificate

A physical document that represents ownership in a corporation, indicating the number of shares owned by the shareholder.

Prospectus

A description of the firm and the security it is issuing.

Registration Statement

A legal document filed with the relevant regulatory authority that provides essential details about a company's finances, executives, and the securities it intends to issue to the public.

Limit-Sell Order

An order given to a broker to sell a specified quantity of a security at or above a specified price, ensuring the seller does not receive less than a predetermined price.