An example of a transaction that must be disclosed as a noncash investing and financing activity includes:
A) The retirement of debt by issuance of equity.
B) The purchase of long-term assets financed by a cash down payment and a note payable to the seller for the balance.
C) The leasing of assets in a transaction that qualifies as a capital lease.
D) The purchase of noncash assets in exchange for equity or debt securities.
E) All of these.

Question

Quizplus · Accepted Answer

Noncash investing and financing activities include transactions like retiring debt by issuing equity, purchasing long-term assets with a note payable, capital leases, and exchanging noncash assets for equity or debt securities. All these examples fit the criteria.

An Example of a Transaction That Must Be Disclosed as a Noncash