Which of the Following Is an Example of a Noncash

question 34

Multiple Choice

Which of the following is an example of a noncash activity?

• A)Sale of land for less than its cost.
• B)Purchase of land by issuing debt.
• C)Sale of land for more than its cost.
• D)Purchase of land using cash proceeds from issuance of common stock.

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Definitions:

Amortized

The process of paying off a debt with a fixed repayment schedule in regular installments over a period of time.

Loan Payments

The regular payments made to repay borrowed money, typically including both principal and interest components.

Amortized

A process of paying off debt in regular installments over a period of time, where each payment is partially principal and partially interest.

Compounded Semi-annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods twice a year.