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 $6,500 in exchange for $6,500 cash
B) settled a long-term note payable by issuing common stock
C) issued 20,000 shares of stock at $4 per share
D) purchased land for $30,000 cash

Question

Quizplus · Accepted Answer

Settling a long-term note payable by issuing common stock is a non-cash transaction and therefore would be included in the non-cash investing and financing activities section of the statement of cash flows. Options A, C, and D are all cash transactions and would not be included in this section.

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