The acquisition of a building by issuing bonds would be considered an investing and financing activity that did not affect cash.

Question

Quizplus · Accepted Answer

The acquisition of a building by issuing bonds is considered a non-cash investing and financing activity because it involves exchanging one long-term asset (the building) for another long-term liability (the bonds) without the immediate use of cash.

The Acquisition of a Building by Issuing Bonds Would Be