Respuesta :
Answer: stock dividends
Explanation:
Noncash investing and financing activities are simply referred to as the significant investing and financing activities which doesn't affect cash directly.
The activities involved here include, stockholders equity etc. and they are typically found at bottom of cash flow statement.
Based on the options given, the example of a significant noncash activity will include conversion of bonds into common stock, exchanges of plant assets and the issuance of debt to purchase assets.
Therefore, the correct option will be stock dividends.
Stock dividend represent the example of significant non-cash activity.
The following are the cash activity:
- Conversion of bonds into common stock.
- Exchanges of plant assets.
- Issuance of debt to purchase asset.
Stock dividend reduced the shareholder equity also it contains the normal debit balance. It does not required any cash at the same time it decrease the retained earnings.
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