Question

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 merchandise inventory on account.
d. issuance of common stock to acquire land.

Answer 1

A non-cash investment and financing activity is the payment of a cash dividend.

What are investing and financing activities not involving cash?

Transactions that have an impact on recognized assets or liabilities but don't lead to actual cash revenues or outlays are referred to as non-cash investing and financing activities.

Which of the following activities doesn't involve money?

These non-cash operations could involve obsolescence as well as depreciation and amortization. On the balance statement, property, plant, and equipment are listed. Depreciation or amortization is the term used to record these items in discrete amounts on the income statement. Deferred income tax, write-downs in the value of acquired companies, employee stock-based compensation, as well as depreciation and amortization are a few examples of non-cash items.

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