Which of the following transactions would be disclosed on a schedule of noncash investing and financing activities?
A)A mortgage liability accepted in exchange for title to a building.
B)Writing off an uncollectible account receivable.
C)The issuance of bonds for cash.
D)A mortgage liability accepted in exchange for title to a building and also writing off an uncollectible account receivable.

Question

Quizplus · Accepted Answer

A mortgage liability accepted in exchange for title to a building is a noncash investing activity and would be disclosed on a schedule of noncash investing and financing activities. Writing off an uncollectible account receivable is a nonoperating activity and would not be disclosed on this schedule. The issuance of bonds for cash is a financing activity and would be disclosed on a schedule of cash flows.

Which of the Following Transactions Would Be Disclosed on a Schedule