Which of the Following Is a Non-Cash Transaction That Should

question 9

Multiple Choice

Which of the following is a non-cash transaction that should be disclosed in a schedule accompanying the statement of cash flows?

• A) Sale of an investment for cash
• B) Purchase of a machine for cash
• C) Issuance of common stock in exchange for land
• D) Declaration and payment of a cash dividend on common stock

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Definitions:

Payments

Payments are the transfers of money or the consideration of goods or services from one individual or entity to another.

Gold Standard

A historical system of fixed exchange rates in which nations defined their currency in terms of gold, maintained a fixed relationship between their stock of gold and their money supplies, and allowed gold to be freely exported and imported.

Current Account

The section of a nation’s international balance of payments that records its exports and imports of goods and services, its net investment income, and its net transfers.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific period.