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

question 95

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 $15,000 in exchange for $15,000 cash
• B) retired company bonds before the maturity date by paying a negotiated amount
• C) issued 50,000 shares of stock at $2 per share
• D) purchased land by signing a 10-year note for $500,000

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Definitions:

Manufacturing Departments

Specific sections within a manufacturing company, each focusing on different aspects of the production process.

Customizing Department

A specialized section within a manufacturing operation focused on modifying products to meet specific customer requirements or preferences.

Predetermined Overhead Rate

A predetermined overhead rate is used to allocate manufacturing overhead costs to products based on a consistent formula, before the actual overhead costs are known.

Direct Labor-Hours

The cumulative hours logged by workers who are actively engaged in the production process.