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 by means of a finance lease.
D) The purchase of noncash assets in exchange for equity or debt securities.
E) All of these.

Question

Quizplus · Accepted Answer

All the options listed (A, B, C, D) are examples of noncash investing and financing activities. These types of transactions do not involve cash directly but must be disclosed in the financial statements to provide a complete picture of the company's financial activities.

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