Which of the Following Transactions Would Be Shown in the Non-Cash

question 96

Multiple Choice

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

• A)sold equipment with book value of $8,000 in exchange for $8,000 cash
• B)borrowed $32,000 cash on a Note Payable
• C)issued 15,000 shares of stock at $3 per share
• D)purchased a building in exchange for 20,000 shares of Common Stock

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit changes as production volume increases.

Maximum Capacity

The highest level of output or activity that a facility, system, or machine can achieve under normal conditions.

Capital

Economic resources that are used in the production of goods and services, including buildings, machinery, equipment, and financial assets.

User Cost

The cost of using a durable good over time, considering depreciation and the opportunity cost of not investing funds elsewhere.