Which of the following items is included on a statement of cash flows as a noncash exchange?
A) Depreciation
B) Issuance (sale)of common stock
C) Purchase of treasury stock
D) Retirement of long-term debt by issuance of preferred stock

Question

Quizplus · Accepted Answer

Noncash exchanges are significant investing and financing activities that do not involve cash. The retirement of long-term debt by issuing preferred stock is an example of a noncash financing activity, as it involves exchanging one form of financing (debt) for another (equity) without the use of cash.

Which of the Following Items Is Included on a Statement