Which Transaction Would Not Appear in the Body of a Statement

question 65

Multiple Choice

Which transaction would not appear in the body of a statement of cash flows?

• A)Acquisition of assets by means of a share issue.
• B)Purchase of a building by incurring a mortgage to the seller.
• C)Conversion of a liability to equity.
• D)All of the above.

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Definitions:

Variable Costing

An accounting approach where only variable production costs are included in product costs, with fixed overhead expenses treated as period costs.

Operating Income

Income generated from normal business operations, excluding costs and expenses.

Manufacturing Margin

The difference between the cost of production and the selling price of manufactured goods.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.