An example of a transaction that must be disclosed as a noncash investing and financing activity includes all but which of the following?
A) The purchase of noncash assets in exchange for equity or debt securities.
B) The retirement of debt by issuing equity stock.
C) The leasing of assets in a transaction that qualifies as a capital lease.
D) A transaction exchanging cash equivalents for cash.
E) The purchase of long-term assets financed by a cash down payment and a note payable to the seller for the balance.

Question

Quizplus · Accepted Answer

A transaction exchanging cash equivalents for cash does not involve noncash assets or financing activities and therefore would not need to be disclosed as a noncash investing and financing activity. The other choices all involve noncash assets or financing activities that would need to be disclosed.

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