Which of the following is a noncash investing and financing activity?
A) payment of a cash dividend
B) payment of a six-month note payable
C) purchase of inventory on account
D) issuance of common stock to acquire land

Question

Quizplus · Accepted Answer

Noncash investing and financing activities are significant transactions that do not involve cash but affect the financial position of a company. The issuance of common stock to acquire land is an example of a noncash transaction because it involves exchanging stock (an equity item) for land (an asset), without the direct use of cash.

Which of the Following Is a Noncash Investing and Financing