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Explain what we mean by noncash activities and provide an example.
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Answered 2 years ago
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1 of 2Now, let's work out our problem:
Following are examples of non cash items of cash flow:
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Financing activities - example: conversion of bonds payable into common stock
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Financing activities - example: exchange of long - term assets
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Investing activities - example: purchase of long-term assets by issuing stock
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Investing activities - example: purchase of long-term assets by issuing debt
Answered 2 years ago
Noncash activities do not require cash inflow or outflow for transaction to occur, such as purchase of long-term asset by issuing bond or stock.
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