An Example of a Transaction That Must Be Disclosed as a Noncash

question 128

Multiple Choice

An example of a transaction that must be disclosed as a noncash investing and financing activity includes all but which of the following?

• A)The retirement of debt by issuing equity stock.
• B)A transaction exchanging cash equivalents for cash.
• C)The leasing of assets in a long-term lease transaction.
• D)The purchase of noncash assets in exchange for equity or debt securities.
• E)The purchase of long-term assets financed by issuing a note or bond.

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Definitions:

Market Value

The ongoing rate at which a commodity or service is offered for buying or selling in the market.

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Cash Dividends

Payments made by a corporation to its shareholders in the form of cash out of its earnings.

Market Value

The current price at which an asset or service can be bought or sold, determined by supply and demand in the market.