QuestionDecember 15, 2025

Which of the following is not an example of noncash financing and investing? Multiple Choice Purchase of equipment by issuing a note payable. Conversion of preferred stock to common stock. Purchase of a building by issuing equity stock. Purchase of inventory using cash. Retirement of debt by issuing equity stock.

Which of the following is not an example of noncash financing and investing? Multiple Choice Purchase of equipment by issuing a note payable. Conversion of preferred stock to common stock. Purchase of a building by issuing equity stock. Purchase of inventory using cash. Retirement of debt by issuing equity stock.
Which of the following is not an example of noncash financing and investing?
Multiple Choice
Purchase of equipment by issuing a note payable.
Conversion of preferred stock to common stock.
Purchase of a building by issuing equity stock.
Purchase of inventory using cash.
Retirement of debt by issuing equity stock.

Solution
4.0(191 votes)

Answer

Purchase of inventory using cash. Explanation 1. Identify what “noncash financing and investing” means Noncash financing and investing transactions occur when significant investing or financing activities do **not involve cash**. 2. Evaluate each option - **Purchase of equipment by issuing a note payable** → no cash → noncash. - **Conversion of preferred stock to common stock** → no cash → noncash. - **Purchase of a building by issuing equity stock** → no cash → noncash. - **Purchase of inventory using cash** → involves cash → **not** noncash. - **Retirement of debt by issuing equity stock** → no cash → noncash.

Explanation

1. Identify what “noncash financing and investing” means <br /> Noncash financing and investing transactions occur when significant investing or financing activities do **not involve cash**. <br /><br />2. Evaluate each option <br />- **Purchase of equipment by issuing a note payable** → no cash → noncash. <br />- **Conversion of preferred stock to common stock** → no cash → noncash. <br />- **Purchase of a building by issuing equity stock** → no cash → noncash. <br />- **Purchase of inventory using cash** → involves cash → **not** noncash. <br />- **Retirement of debt by issuing equity stock** → no cash → noncash.
Click to rate:

Similar Questions