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

question 94

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 purchase of noncash assets in exchange for equity or debt securities.
• B) The retirement of debt by issuing equity stock.
• C) The leasing of assets in a transaction that qualifies as a capital lease.
• D) A transaction exchanging cash equivalents for cash.
• E) The purchase of long-term assets financed by a cash down payment and a note payable to the seller for the balance.

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Definitions:

Abstract Operational Stage

A stage of cognitive development in Jean Piaget's theory, typically occurring from around age 12 and up, when individuals gain the ability to think abstractly and logically.

Centration

A cognitive limitation in early childhood, where the focus is on one salient aspect of a situation, neglecting other possible factors.

Symbolic Functioning

The ability to use symbols, signs, or objects to represent something else, a milestone in cognitive development allowing for complex thought.

Concrete Operations

A stage in Piaget's theory of cognitive development, typically from ages 7 to 11, when children gain the ability to think logically about concrete events.