Which of the following transactions would be shown in the non-cash investing and financing activities section of the cash flow statement?
A)Sold equipment with book value of $4 000 in exchange for $1 000 cash and a $3 000 bill
B)Purchased a building in exchange for 10 000 ordinary shares
C)Borrowed $22 000 cash on a bill payable
D)Issued 10 000 shares at $5 per share

Question

Quizplus · Accepted Answer

Non-cash investing and financing activities involve transactions that do not involve cash but affect the financial position. Exchanging shares for a building is a non-cash transaction that would be reported in this section.

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