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

question 72

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 $8,000 in exchange for $8,000 cash
• B) borrowed $32,000 cash on a note payable
• C) issued 15,000 shares of common stock at $3 per share
• D) purchased a building in exchange for 20,000 shares of common stock

Understand the provisions regarding unconscionability and how the UCC addresses fairness in contracts.

Recognize the role of merchant status, along with the associated rights and obligations under the UCC.

Realize the implications of the "battle of the forms" under the UCC and its modern approach to contract acceptance and terms.

Differentiate between UCC and common law contract principles, including their application to mixed contracts (goods and services).

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Definitions:

Highest Initial Price

A pricing strategy where a new product is introduced to the market at a high price before possibly lowering it later based on demand and competition.

Innovative Product

A new or significantly improved product that introduces a novel feature or fulfills a specific need in a new way.

Skimming Pricing

A pricing strategy where a high price is set for a new product to maximize profits from segments willing to pay more, before prices are lowered over time.

Demand-oriented

A pricing strategy where prices are set based on the perceived value to the customer or demand for the product, rather than on the cost of the product or market competition.