All of the following are examples of noncash financing and investing except:
A)Retirement of debt by issuing equity stock.
B)Purchase of equipment by issuing a note payable.
C)Purchase of inventory using cash.
D)Purchase of a building by issuing equity stock.
E)Conversion of preferred stock to common stock.

Question

Quizplus · Accepted Answer

This is an example of cash financing as cash is being used to purchase inventory. All of the other options involve noncash financing, such as issuing equity stock or issuing a note payable.

All of the Following Are Examples of Noncash Financing and Investing