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 $15,000 in exchange for $15,000 cash
B) retired company bonds before the maturity date by paying a negotiated amount
C) issued 50,000 shares of stock at $2 per share
D) purchased land by signing a 10-year note for $500,000

Question

Quizplus · Accepted Answer

Non-cash investing and financing activities are significant transactions that do not involve cash but still affect the financial position of the company. Purchasing land by signing a note payable is an example of a non-cash financing activity, as it involves acquiring an asset through financing rather than using cash.

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