The Appropriate Section in the Statement of Cash Flows for Reporting

question 168

Multiple Choice

The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:

• A)Operating activities.
• B)Financing activities.
• C)Investing activities.
• D)Schedule of noncash investing or financing activity.
• E)None of these as this is not reported on the statement of cash flows.

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Definitions:

Nominal Wage

The amount of money received by a worker per unit of time (hour, day, etc.); money wage.

Price Level

A measure of the average prices of goods and services in an economy, often used to evaluate inflation or deflation over time.

Real Wage

The amount of goods and services a worker can purchase with his or her nominal wage; the purchasing power of the nominal wage.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.