Which of the following is an example of a noncash activity?
A)Sale of land for less than its cost.
B)Purchase of land by issuing debt.
C)Sale of land for more than its cost.
D)Purchase of land using cash proceeds from issuance of common stock.

Question

Quizplus · Accepted Answer

Noncash activities are transactions that do not involve the exchange of cash, such as issuing debt or stock to acquire assets. Option B is the only choice that involves an exchange of noncash items.

Which of the Following Is an Example of a Noncash