Which of the following is reported as a noncash investing and financing transaction on the statement of cash flows?
A) Conversion of bonds payable to stock
B) Purchase of treasury stock
C) Payment of long-term debt
D) Sale of preferred stock

Question

Quizplus · Accepted Answer

Conversion of bonds payable to stock is a noncash investing and financing transaction as there is no exchange of cash involved, and it represents a change in the method of financing the company. The other options involve the exchange of cash and, therefore, are not noncash transactions.

Which of the Following Is Reported as a Noncash Investing