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 ordinary shares.
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 a supplementary schedule accompanying the statement of cash flows. This is because no cash is exchanged at the time of the sale, but rather a note receivable is given in exchange for the land.

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