Transactions that represent noncash investing and financing activities must be reported in the statement of cash flows or in disclosure notes.

Question

Quizplus · Accepted Answer

Noncash investing and financing activities such as issuing common stock in exchange for assets, or acquiring assets through the assumption of a liability, should be reported in either the statement of cash flows or in the accompanying notes to the financial statements, according to Generally Accepted Accounting Principles (GAAP).

Transactions That Represent Noncash Investing and Financing Activities Must Be