Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?
A) sold equipment with book value of $8,000 in exchange for $8,000 cash
B) borrowed $32,000 cash on a note payable
C) issued 15,000 shares of common stock at $3 per share
D) purchased a building in exchange for 20,000 shares of common stock

Question

Quizplus · Accepted Answer

The purchase of a building in exchange for common stock is a non-cash investing and financing activity. Option A is a cash transaction, option B is a financing activity, and option C is an issuance of common stock at a cash price, so it is also a financing activity.

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