An example of a non-cash investing or financing activity that is disclosed in a supplementary schedule accompanying the statement of cash flows is:
A)Recording depreciation expense for the current year.
B)Declaring,but not paying,dividends on common stock.
C)Selling land in exchange for a note receivable.
D)Transferring cash from a checking account into a money market fund.

Question

Quizplus · Accepted Answer

Selling land in exchange for a note receivable is a non-cash investing activity that would be disclosed in the supplementary schedule accompanying the statement of cash flows. Option A is a non-cash operating activity that would be included in the operating section of the statement of cash flows. Option B is a financing activity that would be included in the financing section of the statement of cash flows. Option D is a cash management activity that would not be included in the statement of cash flows at all.

An Example of a Non-Cash Investing or Financing Activity That