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      Question

      Which of the following is an example of non-cash

      investing and financing activity that must be disclosed separately?
      A Purchase of asset by issue of equity shares (share swap) Correct Answer Incorrect Answer
      B Cash paid to acquire an asset Correct Answer Incorrect Answer
      C Cash received from sale of asset Correct Answer Incorrect Answer
      D Cash dividends paid Correct Answer Incorrect Answer

      Solution

      Significant non-cash investing and financing transactions, such as acquiring an asset by issuing equity, are disclosed separately in the notes to the financial statements.

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