Which of the following transactions would be shown in the non- cash investing and financing activities section of the cash flow statement?
A)Issued 10 000 shares at $5 per share
B)Purchased land by signing an 8- year bill for $200 000
C)Retired company bonds before the maturity date by paying a negotiated amount
D)Sold equipment with book value of $4 000 in exchange for $1 000 cash and a $3 000 bill

Question

Quizplus · Accepted Answer

Non-cash investing and financing activities include transactions that do not involve cash but affect the company's financial position. Purchasing land by signing a bill is a non-cash transaction as it involves acquiring an asset without immediate cash payment.

Which of the Following Transactions Would Be Shown in the Non-