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

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Definitions:

Trade Adjustment Assistance Act

A U.S. law passed in 2002 that provides cash assistance, education and training benefits, health care subsidies, and wage subsidies (for persons age 50 or older) to workers displaced by imports or relocations of U.S. plants to other countries.

Displaced Workers

Individuals who have lost their jobs due to economic changes, technological advancements, or other factors outside their control.

Export Markets

Overseas markets where goods and services produced in one country are sold.

Supply and Demand Analysis

An economic model that determines the price of a product in a market by evaluating the balance between the quantity of a good or service available and the desire (or demand) for that good or service.