Which of the following is a noncash investing and financing activity?
A) payment of a cash dividend
B) payment of a six-month note payable
C) purchase of merchandise inventory on account
D) issuance of common stock to acquire land

Question

Quizplus · Accepted Answer

Noncash investing and financing activities are transactions that do not involve cash but significantly affect the financial position of a company. Issuance of common stock to acquire land is an example of such an activity, as it involves acquiring an asset (land) through means other than cash (issuing stock).

Which of the Following Is a Noncash Investing and Financing