Question : Acquisition of fixed asset by issue of debentures or shares is an example of --------------------
Option 1: Non-cash transactions.
Option 2: Cash transactions.
Option 3: Both 1 and 2
Option 4: None of the above
Answer (1)
23rd Jan, 2024
Correct Answer: Non-cash transactions.
Solution : Answer = Non-cash transactions.
When assets are purchased and payment is made by issuing equity shares, it is a non-cash transaction in this case neither inflow nor outflow of cash. Acquisition of fixed assets by issuing debentures or shares is classified as a non-cash transaction because it involves exchanging securities for assets without involving actual cash inflows or outflows.
Hence, the correct option is 1.
Comments (0)
