Purchase of building by issue of debenture is a---------item and it is ignored in cash flow statement

Question

Quizplus · Accepted Answer

The purchase of a building by issuing debentures is considered a non-cash transaction because it does not involve any immediate cash outflow or inflow. In cash flow statements, only transactions that directly affect the company's cash and cash equivalents are recorded, hence non-cash transactions like this are ignored.

Purchase of Building by Issue of Debenture Is A---------Item and It