The purchase of non-cash assets by issuing equity or debt securities. [...] Activities
Answer
Non-cash Activities
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Subject 1. Classification of Cash Flows and Non-Cash Activities quity 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. Exchanging one non-cash asset for another non-cash asset. <span>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 a non-cash one, as it does not involve direct outlays of cash. Therefo
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