Asked by Jeremiah Miller on Jul 21, 2024
Verified
Significant noncash transactions would not include
A) conversion of bonds into common stock.
B) asset acquisition through bond issuance.
C) treasury stock acquisition.
D) exchange of plant assets.
Significant Noncash Transactions
Financial activities that do not involve cash flows but significantly affect the financial position of a company.
Treasury Stock Acquisition
The purchase of a company's own shares from the marketplace, reducing the amount of outstanding stock.
Bond Issuance
The process of selling bonds to investors in order to raise capital.
- Comprehend the methods of handling noncash transactions and major noncash activities.
Verified Answer
BL
Brittany LaskeroJul 23, 2024
Final Answer :
C
Explanation :
Treasury stock acquisition involves the use of cash and therefore does not qualify as a noncash transaction. The other choices involve transactions that do not directly involve cash.
Learning Objectives
- Comprehend the methods of handling noncash transactions and major noncash activities.