Which of the following is a non-cash transaction that should be disclosed in a schedule accompanying the statement of cash flows?
A) Sale of an investment for cash
B) Purchase of a machine for cash
C) Issuance of common stock in exchange for land
D) Declaration and payment of a cash dividend on common stock

Question

Quizplus · Accepted Answer

The issuance of common stock in exchange for land is a non-cash transaction that should be disclosed in a schedule accompanying the statement of cash flows. Non-cash transactions are events that do not involve the exchange of cash, but have an impact on cash or cash equivalents. The sale of an investment for cash and the purchase of a machine for cash are both cash transactions and would be reflected in the statement of cash flows. The declaration and payment of a cash dividend on common stock would also be reflected in the statement of cash flows.

Which of the Following Is a Non-Cash Transaction That Should