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Which of the following is an example of a noncash activity?Multiple ChoicePurchase of long-term assets by issuing debtReacquisition of a company's own stockSale of an intangible assetPurchase of investments with cash

Question

Which of the following is an example of a noncash activity?Multiple ChoicePurchase of long-term assets by issuing debtReacquisition of a company's own stockSale of an intangible assetPurchase of investments with cash

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Solution

The example of a noncash activity from the options provided is the "Purchase of long-term assets by issuing debt". This is because it involves an exchange that does not involve the direct use of cash. Instead, the company is acquiring an asset (long-term assets) by issuing debt, which is a liability, not cash.

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