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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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