Which of the Following Transactions Would Be Shown in the Non-Cash

question 78

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 $6,500 in exchange for $6,500 cash
• B)settled a long-term Note Payable by issuing Common Stock
• C)issued 20,000 shares of stock at $4 per share
• D)purchased land for $30,000 cash

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Definitions:

Capital Stock

Capital stock is the total amount of physical, non-consumable goods, or financial assets that a company uses for production of goods or services, including buildings, machinery, and equipment.

Investment Project

A specific plan or initiative undertaken by a business or organization involving capital investment aimed at achieving certain financial or strategic goals.

Interest

The cost paid by a borrower for the use of borrowed money, or the income earned by an investor on their investment.

Inventory

The total amount of goods and materials held in stock by a business, intended for sale or production purposes.