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:

Liability

A legal obligation or responsibility that can arise from contracts, torts, or other legal matters, potentially resulting in the need to pay damages or perform specific acts.

Airplane Manufacturers

Companies or entities that design, produce, and often test aircraft for civilian or military use.

Accident Rates

The frequency or proportion of accidents occurring in a particular context or organization over a specified period.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been completed.