Examples of nonmonetary transactions is/are:
A)the acquisition of equipment in exchange for shares of common stock.
B)the conversion of a firm's debt into common shares.
C)paying interest.
D)paying dividends.
E)both choices a and b.

Question

Quizplus · Accepted Answer

Nonmonetary transactions are those that involve the exchange of noncash assets or liabilities. Choices A and B involve the acquisition of equipment and the conversion of debt into common shares, respectively, in exchange for shares of common stock - both of which are noncash assets. On the other hand, paying interest (choice C) and dividends (choice D) involve cash transactions, and thus are not considered nonmonetary transactions.

Examples of Nonmonetary Transactions Is/are