The direct exchange of debt for equipment would be shown:
A)on the statement of cash flows as an operating activity.
B)on the statement of cash flows as an investing activity.
C)on the statement of cash flows as a financing activity.
D)as a supplementary disclosure to the statement of cash flows.

Question

Quizplus · Accepted Answer

The direct exchange for equipment is a noncash transaction.All companies are required to report material investing and financing transactions that did not have cash flow effects (called noncash investing and financing activities).

The Direct Exchange of Debt for Equipment Would Be Shown