Which of the Following Transactions Would Be Shown in the Noncash

question 102

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) Retired company bonds before the maturity date by paying a negotiated amount
• C) Issued 10,000 shares of stock at $5 per share
• D) Purchased land by signing an 8-year note for $200,000

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Definitions:

Money Supply

At any specified time, the overall financial assets available in an economy, covering cash, coins, and the balances in checking and savings accounts.

Output

The amount of goods or services produced by a company, industry, or economy within a specific period.

Long-run Phillips Curve

An economic concept illustrating that in the long-term, there is no trade-off between inflation and unemployment, suggesting that the natural rate of unemployment is unaffected by inflation.

Money Supply Growth Rate

The rate at which the total amount of money available in an economy increases over a specific period.