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      Question

      Which of the following is an example of a non-cash

      activity?
      A Payment of accounts payable Correct Answer Incorrect Answer
      B Payment of dividends Correct Answer Incorrect Answer
      C Issuance of common stock Correct Answer Incorrect Answer
      D Depreciation expense Correct Answer Incorrect Answer

      Solution

      Depreciation expense is a non-cash activity, as it represents the decrease in the value of a long-term asset over time.

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