A Transaction of Issuance of Stock in Exchange for Equipment

question 116

Multiple Choice

A transaction of issuance of stock in exchange for equipment would be recorded as a(n) :

• A)operating activity.
• B)investing activity.
• C)financing activity.
• D)noncash investing and financing activity.

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Definitions:

Increasing Inputs

Refers to a situation in production or economics where there is a rise in the resources used to produce goods or services.

Holding Outputs

The act of retaining finished goods or services before they are sold or delivered to the next stage of the supply chain or to customers.

Assembly Line

A manufacturing approach in which items are sequentially joined to create a finished product in an efficient way.