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

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

Which of the following transactions is NOT considered a noncash investing and financing activity?

Converting bonds payable into common stock

Purchasing equipment by signing a long-term note payable

Collecting cash from customers on account

Issuing common stock to acquire land

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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 converting bonds payable into common stock or purchasing equipment by signing a long-term note payable.

Step 2: Review each transaction listed in the problem and determine whether it involves cash or is a noncash activity. For example, converting bonds payable into common stock does not involve cash, making it a noncash activity.

Step 3: Analyze the transaction 'Purchasing equipment by signing a long-term note payable.' This is a noncash activity because no cash is exchanged; instead, a liability (note payable) is created.

Step 4: Examine the transaction 'Issuing common stock to acquire land.' This is also a noncash activity because the company is exchanging equity (common stock) for an asset (land) without involving cash.

Step 5: Evaluate the transaction 'Collecting cash from customers on account.' This involves cash inflow and is part of operating activities, not a noncash investing or financing activity. Therefore, this transaction is NOT considered a noncash investing and financing activity.