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Which of the following is an example of a noncash activity?
A. Purchase of investments with cash
B. Reacquisition of a company's own stock from the market
C. Purchase of long-term assets by issuing debt
D. Sale of an intangible asset

Respuesta :

Baraq

Based on financial analysis, the statement that describes the example of a no-cash activity is the Purchase of long-term assets by issuing debt.

What is the Debt Issue?

Debt Issue is a financial term that is used to describe the promissory note in which the issuer is the borrower, and the entity buying the debt asset is the lender.

Generally, the issue of debt is a process whereby a debt issue is made available, investors buy it from the seller who uses the funds to pursue its capital projects.

Features of Debt Securities

  • Issue date and issue price
  • Coupon rate
  • Maturity date
  • Yield-to-Maturity (YTM)
  • Return on Capital
  • Regular stream of income from interest payments
  • Means for diversification

Hence, in this case, it is concluded that the correct answer is option C. ”Purchase of long-term assets by issuing debt." because it involves no cash.

Learn more about Debt Issues here: https://brainly.com/question/28237935

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