Which of the following transactions is not a significant noncash investing and financing activity?
A)Land is purchased by issuing a 20-year mortgage note payable.
B)Bonds are issued to purchase a building.
C)Cash equivalents are purchased.
D)Buildings are acquired by issuing common stock.

Question

Quizplus · Accepted Answer

Cash equivalents are purchased with cash, which is a cash transaction and not a noncash investing or financing activity. The other options involve noncash transactions, such as issuing mortgages, bonds, and stocks to acquire assets.

Which of the Following Transactions Is Not a Significant Noncash