Which of the Following Would Not Be Found in a Schedule

question 141

Multiple Choice

Which of the following would not be found in a Schedule of Noncash Investing and Financing Activities, reported at the end of a Statement of Cash Flows?

• A) equipment acquired in exchange for a note payable
• B) bonds payable exchanged for capital stock
• C) purchase of treasury stock
• D) capital stock issued to acquire fixed assets

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Definitions:

Indirect Method

A cash flow statement presentation technique where net income is adjusted for changes in balance sheet accounts to calculate operating cash flow.

Indirect Method

A technique used in cash flow statement preparation where net income is adjusted for non-cash transactions to calculate operating cash flows.

Cash Dividends

Payments made by a corporation to its shareholder members from earnings, typically in the form of cash.

Net Income

The amount of money remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.