An example of a non-cash investing or financing transaction is:

Question

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The purchase of a building paid for by an issue of shares direct to the vendor is a non-cash financing transaction because no cash is exchanged between the company and the vendor. Instead, shares in the company are issued to the vendor as payment. Option A is not a transaction, but rather an accounting entry. Option B is a cash transaction. Option C is a cash financing transaction where the company pays off a loan.

An Example of a Non-Cash Investing or Financing Transaction Is