Which of the following transactions would be shown in the noncash investing and financing activities section of the statement of cash flows?
A) Sold equipment with book value of $4,000 in exchange for $1,000 cash and a $3,000 note
B) Borrowed $22,000 cash on a note payable
C) Issued 10,000 shares of stock at $5 per share
D) Purchased a building in exchange for 10,000 shares of common stock

Question

Quizplus · Accepted Answer

Transaction D involves acquiring a building in exchange for shares of common stock, which is a noncash transaction involving both investing (acquiring a building) and financing activities (issuing shares). Transactions A, B, and C involve cash and thus would not be included in the noncash investing and financing activities section.

Which of the Following Transactions Would Be Shown in the Noncash