Transactions that don't increase or decrease cash,but that result in significant investing and financing activities,are reported either directly after the cash flow statement or in a separate note to the financial statements as noncash activities.

Question

Quizplus · Accepted Answer

This statement is true. Noncash activities, such as the acquisition of assets through the issuance of debt, are reported in a separate section of the financial statements or in a note to the financial statements. They do not affect the cash flow statement since no cash changes hands.

Transactions That Don't Increase or Decrease Cash,but That Result in Significant