Companies sometimes obtain financing other than cash. Although such transactions do not directly involve cash, they still must be reported in the financing section of the cash flow statement.

Question

Quizplus · Accepted Answer

Non-cash financing activities are not reported in the cash flow statement; instead, they are typically disclosed in the notes to the financial statements or in a supplementary schedule. The cash flow statement specifically reports cash inflows and outflows related to operating, investing, and financing activities.

Companies Sometimes Obtain Financing Other Than Cash