Brown,IncOwed One of Its Creditors $350,000,but It Did Not Have

question 75

Multiple Choice

Brown,Inc.owed one of its creditors $350,000,but it did not have enough cash to repay the debt.Following lengthy negotiations,the parties agreed that Brown,Inc.would issue 50,000 shares of common stock to settle the debt.On the statement of cash flows,this transaction is shown in the ________.

• A)investing activities section
• B)financing activities section
• C)operating activities section
• D)non-cash investing and financing activities section

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Definitions:

Variable Substitution

Replacing a variable in an equation or expression with its corresponding value.

Variable Substitution

Replacing variables with specific values or expressions within mathematical equations to simplify or solve them.

Exponentiation

A mathematical operation involving two numbers, where one number, the base, is raised to the power of the other, the exponent.

Exponentiation

The operation of raising one number (the base) to the power of another (the exponent), a fundamental mathematical operation.