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

question 63

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

---

Definitions:

Labor

The human effort, including both physical and mental exertion, used in the production of goods and services.

Machines

Mechanical or electronic devices that perform tasks or assist in carrying out tasks, ranging from simple tools to complex systems.

Average Cost

It refers to the total cost per unit produced, calculated by dividing the total cost of production by the number of units produced.

Copper

A reddish-brown, malleable, ductile metallic element used as a conductor of heat and electricity, and in various alloys.