Which of the following is defined as activities that do not impact cash?

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Master the UCF ACG2021 Principles of Financial Accounting Final Exam. Study with comprehensive practice tests, flashcards, and multiple choice questions, each with detailed explanations. Ace your exam!

Non-cash activities refer to transactions that do not involve cash exchanges at the time of the transaction. These activities may affect the financial position of a company and are important for understanding the overall operations of the business, but they occur without immediate cash inflow or outflow. Examples include depreciation, write-offs, and the issuance of stock in exchange for services rendered.

Understanding non-cash activities is crucial for interpreting a company's financial statements, particularly the cash flow statement, as it provides a clearer picture of how much cash is generated from operations versus how much is recorded as revenues or expenses without impacting cash directly.

By contrast, cash activities involve actual cash transactions, investing activities pertain to the purchase and sale of long-term assets, and operating activities generally involve cash operations that directly affect the company's core business activities.