Which of the Following Transactions Is Not a Direct Use

question 75

Multiple Choice

Which of the following transactions is not a direct use of cash?

• A)Acquisition of inventory for cash.
• B)Purchase of treasury shares with cash.
• C)Exchanges of bonds payable for land.
• D)Cash dividend paid.

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Definitions:

Available-For-Sale

A classification of financial assets indicating that they are not held for trading or long-term investment purposes, and their value can be adjusted based on market valuations.

Realized Gain

The profit earned from the sale of an asset, which has been converted from an unrealized gain into cash or an equivalent.