Which of the following transactions is not a direct use of cash?
A) Cash dividend paid.
B) Acquisition of inventory for cash.
C) Exchange of bonds payable for land.
D) Purchase of treasury shares with cash.

Question

Quizplus · Accepted Answer

The exchange of bonds payable for land is a non-cash transaction. The company is giving up a liability (the bonds payable) in exchange for an asset (the land) and no cash is involved. The other options (A, B, and D) all involve the direct use of cash.

Which of the Following Transactions Is Not a Direct Use