Question

7. Which of the following cash flow activities represents a non-cash
financing transaction?
a. Purchase of goods for cash
b. Issue of shares for cash
c. Sale of equipment for cash
d. Purchase of plant by issuing shares​

Answer 1

• Which of the following cash flow activities represents a non-cash

financing transaction?

a. Purchase of goods for cash = ❌

b. Issue of shares for cash = ✅

c. Sale of equipment for cash = ❌

d. Purchase of plant by issuing shares = ❌

Correct option is b. Issue of shares for cash....☑️

Issuance of common stock to acquire land

As per AS-3, investing and financing transactions that do not require the use of cash or cash equivalents should be excluded from a cash flow statements. Such transactions should be disclosed elsewhere in the financial statements in a way that provide all the relevant information about these investing and financing activities. Example of such transaction are acquisition of land by issue of equity shares or redemption of debenture by issue of equity shares.

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Here your answer I hope it will help you....@itzbrainlyaarya ❣️mark me as brainliest....☺️