Examples of transactions that must be disclosed as noncash investing and financing activities include:
A) The purchase of noncash assets in exchange for equity or debt securities.
B) The purchase of non-current assets financed by a cash down payment and a note payable to the seller for the balance.
C) The conversion of debt securities to equity securities.
D) The leasing of assets in a transaction that qualifies as a finance lease.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Noncash investing and financing activities include transactions like exchanging noncash assets for equity or debt, converting debt to equity, and finance leases, all of which do not involve cash flows.

Examples of Transactions That Must Be Disclosed as Noncash Investing