Which of the Following Transactions Is NOT a Significant Noncash

question 113

Multiple Choice

Which of the following transactions is NOT a significant noncash investing and financing activity?

• A) Land is purchased by issuing a 20-year mortgage note payable.
• B) Bonds are issued to purchase a building.
• C) Cash equivalents are purchased.
• D) Buildings are acquired by issuing common shares.

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Definitions:

Process-Oriented

An approach that focuses on the processes within an organization as a means to achieve efficient results and improvement.

Inventory Turnover Effect

A measure of how quickly a company can sell its stock within a given period, indicating the efficiency of inventory management and sales performance.

Return on Investment

A measure of the gain or loss generated on an investment relative to the amount of money invested.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and shareholders' equity.