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

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Multiple Choice

Each of the following are classified as a noncash investing or financing activity except:

Paying cash dividends to shareholders

Exchanging equipment for a note payable

Issuing common stock to purchase land

Converting bonds payable into common stock

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Verified step by step guidance

Step 1: Understand the concept of noncash investing and financing activities. These are transactions that do not involve cash but still represent significant investing or financing activities. Examples include exchanging equipment for a note payable or converting bonds payable into common stock.

Step 2: Review the options provided in the problem. Identify which activities involve cash and which do not. Paying cash dividends to shareholders involves the use of cash, while the other options involve noncash transactions.

Step 3: Analyze why paying cash dividends to shareholders does not qualify as a noncash investing or financing activity. Cash dividends are a financing activity but involve the outflow of cash, making them distinct from noncash activities.

Step 4: Confirm that the other options (exchanging equipment for a note payable, issuing common stock to purchase land, and converting bonds payable into common stock) are examples of noncash investing or financing activities because they do not involve cash transactions.

Step 5: Conclude that the correct answer is 'Paying cash dividends to shareholders,' as it is the only activity listed that involves cash and does not qualify as a noncash investing or financing activity.