Which of the following transactions is a significant noncash investing and financing activity?
A) Land is purchased for cash.
B) Bonds are issued for cash.
C) Cash equivalents are purchased.
D) Buildings are acquired by issuing common stock.

Question

Quizplus · Accepted Answer

Acquiring buildings by issuing common stock involves a significant noncash investing and financing activity because it means that the company is providing ownership shares in exchange for the buildings, rather than paying cash. This transaction affects both the investing and financing sections of the statement of cash flows.

Which of the Following Transactions Is a Significant Noncash Investing