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:

Deposit Insurance

A protection scheme for bank depositors that guarantees the safety of deposited funds up to a certain limit in the event of a bank failure.

Financial Risk

The possibility of losing money on an investment or business venture.

Open Market Operations

Technique in which the Fed buys or sells government bonds to affect the supply of money and credit.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that must be held by a commercial bank, used as a tool in monetary policy.