Final answer:
The statement is false; even noncash transactions like the purchase of equipment by issuing stock must be recorded in the accounting ledger, affecting both the asset and equity accounts.
Step-by-step explanation:
The statement is false. When equipment is purchased by issuing stock, an entry must indeed be recorded, even though it's a noncash transaction. In accounting, this transaction would require debiting the Equipment account and crediting the Stock Equity account to reflect the issue of stock for the equipment. This is because accounting principles require that every transaction be recorded, irrespective of whether it involves cash or not. The fundamental equation in accounting is Assets = Liabilities + Equity, and issuing stock for equipment affects both the asset side (Equipment increases) and the equity side (Stock Equity increases) of that equation.