Question

Each of the following is an example of a significant noncash activity except Group of answer choices conversion of bonds into common stock. exchanges of plant assets. issuance of debt to purchase assets. stock dividends.

Answer 1

Answer: stock dividends

Explanation:

Noncash investing and financing activities are simply referred to as the significant investing and financing activities which doesn't affect cash directly.

The activities involved here include, stockholders equity etc. and they are typically found at bottom of cash flow statement.

Based on the options given, the example of a significant noncash activity will include conversion of bonds into common stock, exchanges of plant assets and the issuance of debt to purchase assets.

Therefore, the correct option will be stock dividends.