- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 20. Understanding Cash Flow Statements
- Subject 1. Classification of Cash Flows and Non-Cash Activities
CFA Practice Question
Which of the following activities would not be reported on the Supplementary Schedule of Noncash Investing and Financing Activities?
II. A building is purchased by issuing a mortgage note.
III. Holders of convertible bonds exchange the bonds for common stock.
IV. Bonds are retired three years prior to their maturity date.
I. Common stock is issued in exchange for title to land.
II. A building is purchased by issuing a mortgage note.
III. Holders of convertible bonds exchange the bonds for common stock.
IV. Bonds are retired three years prior to their maturity date.
Correct Answer: IV only
User Contributed Comments 4
| User | Comment |
|---|---|
| kalps | The other three do not involve cash movements |
| Bibhu | Tricky question. Bonds retired prior to maturity means those are encashed. |
| accounting | tanks guys |
| Hermalia | Don't forget to look at the NOT in the question. |