All of the following are examples of significant noncash activities EXCEPT
A) the issue of common shares to purchase an asset.
B) the write-off of an uncollectible account receivable.
C) the issue of debt to purchase an asset.
D) the conversion of bonds into common shares.

Question

Quizplus · Accepted Answer

Noncash activities involve transactions that don't directly involve cash flows but significantly affect the financial position of a company. Examples include issuing shares or debt to purchase assets and converting bonds into shares. However, writing off an uncollectible account receivable, while it affects financial statements, is a regular accounting adjustment for bad debts, not a significant noncash investing or financing activity.

All of the Following Are Examples of Significant Noncash Activities