Chapter 13 - Multiple choice quiz
This is the end of the test. When you have completed all the questions and reviewed your answers, press the button below to grade the test. What are examples of noncash investing and financing activities?ASC 230-10-50-4 provides examples of noncash investing and financing transactions:. Converting debt to equity.. Acquiring productive assets by assuming directly related liabilities.. Obtaining an asset by entering into a finance lease. ... . Obtaining a building or investment asset as a gift.. Which of the following is nonThe correct answer is C. Issuance of common stock in relation to the conversion of preferred stock is an example of a non-cash activity.
Which of the following is a noncash activity?These non-cash activities may include depreciation and amortization, as well as obsolescence. Property, plant and equipment resides on the balance sheet. These items are taken on the income statement in small increments called depreciation or amortization.
What are noncash investing and financing activities give one example how are noncash investing and financing activities reported on the statement of cash flows?Investing and financing activities that do not involve cash are not reported in the cash flow statement since there is no cash flow involved. For example, capital items of property, plant and equipment are often acquired through non-cash investing and financing activities.
|