An example of a transaction that must be disclosed as a noncash investing and financing activity includes all but which of the following?
A)The retirement of debt by issuing equity stock.
B)A transaction exchanging cash equivalents for cash.
C)The leasing of assets in a transaction that qualifies as a capital lease.
D)The purchase of noncash assets in exchange for equity or debt securities.
E)The purchase of long-term assets financed by a cash down payment and a note payable to the seller for the balance.

Question

Quizplus · Accepted Answer

A transaction exchanging cash equivalents for cash is a cash transaction and does not involve noncash investing or financing activities. All other options involve noncash investing or financing activities that would need to be disclosed.

An Example of a Transaction That Must Be Disclosed as a Noncash