The accounting principle which requires that noncash financing and investing activities are reported on the statement of cash flows is the principle of
A)Full disclosure
B)Materiality
C)Historical cost
D)Going concern
E)Business entity

Question

Quizplus · Accepted Answer

The principle of full disclosure requires that all information relevant to the financial statements be disclosed, including noncash financing and investing activities, which are reported on the statement of cash flows. This principle ensures that all stakeholders have access to complete and accurate information about the company's financial activities.

The Accounting Principle Which Requires That Noncash Financing and Investing