Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

13. Statement of Cash Flows

Significant Noncash Activities

Financial Accounting

13. Statement of Cash Flows

Significant Noncash Activities

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is an example of a significant noncash activity?

Repaying a bank loan in cash

Issuing common stock to purchase equipment

Receiving cash from customers for services rendered

Paying cash dividends to shareholders

Previous problemNext problem

Verified step by step guidance

Understand the concept of significant noncash activities: These are transactions that do not involve cash but are still important enough to be disclosed in the financial statements. Examples include issuing stock to purchase assets, converting bonds into stock, or acquiring assets through a lease.

Analyze the options provided in the problem: Each option represents a different type of transaction. Determine whether each involves cash or is a noncash activity.

Option 1: Repaying a bank loan in cash. This involves cash outflow and is not a noncash activity.

Option 3: Receiving cash from customers for services rendered. This involves cash inflow and is not a noncash activity.

Option 4: Paying cash dividends to shareholders. This involves cash outflow and is not a noncash activity. Option 2, Issuing common stock to purchase equipment, is a significant noncash activity because it does not involve cash but represents an important transaction that must be disclosed in the financial statements.