Which of the Following Is an Example of a Non-Cash

question 38

Multiple Choice

Which of the following is an example of a non-cash investing or financing transaction?

• A)Charging depreciation
• B)Sale of a parcel of shares
• C)Repayment of a loan
• D)The purchase of a building paid for by an issue of shares direct to the vendor

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Definitions:

Departmental Income Statement

A financial statement that shows the revenue, expenses, and net income for each department within a company, helping to track the performance of distinct areas of the business.

Cost of Goods Sold

The costs incurred directly from the production of goods a company offers for sale, which include material and labor expenses.

Direct Expenses

Direct expenses are costs that can be directly traced to a specific cost object, such as a product, department, or project.

Departmental Contribution Margin

The difference between sales revenue and variable costs for a specific department, indicating its contribution to the overall profit.