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:

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders, typically on a quarterly basis, in the form of cash.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted, reflecting the financial performance over a specific period.

Dual Effects Concept

An accounting principle that recognizes each transaction as having at least two effects on the accounting equation.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period.