Final answer:
Noncash investing and financing activities refer to transactions that do not involve cash receipts or cash payments. Therefore, the correct answer to the question is b. do not involve cash receipts or cash payments.
Step-by-step explanation:
Noncash investing and financing activities refer to transactions that do not involve cash receipts or cash payments. These activities are typically reported in the notes to a company's financial statements and include items such as the acquisition of property, plant, and equipment through the issuance of stock, or the exchange of noncash assets or liabilities.
For example, if a company acquires a new delivery truck by trading in its old truck rather than paying cash, this would be considered a noncash investing activity. Similarly, if a company issues bonds to borrow money rather than receiving cash from a bank loan, this would be a noncash financing activity.
Therefore, the correct answer to the question is b. do not involve cash receipts or cash payments.