Exchanging one non-cash asset for another non-cash asset. [...]Activities
Answer
Non-cash Activities
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Subject 1. Classification of Cash Flows and Non-Cash Activities f cash:
Retiring debt securities by issuing equity securities to the lender. Converting preferred stock to common stock. Acquiring assets through a capital lease. Obtaining long-term assets by issuing notes payable to the seller. <span>Exchanging one non-cash asset for another non-cash asset. The purchase of non-cash assets by issuing equity or debt securities.
For example, if a company purchases $200,000 of land by issuing a long-term bond, this transaction is
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