Noncash investing and financing activities,if material,are
A) reported in the statement of cash flows under the "all-financial-resources concept."
B) reported in the statement of cash flows only if the indirect method is used.
C) disclosed in a note or separate schedule accompanying the statement of cash flows.
D) not reported or disclosed because they have no impact on cash.

Question

Quizplus · Accepted Answer

Noncash investing and financing activities, if material, are disclosed in a note or separate schedule accompanying the statement of cash flows. This is required by Generally Accepted Accounting Principles (GAAP) to provide transparency and completeness in financial reporting. Such activities may include the issuance or retirement of debt, the acquisition of assets through the issuance of equity, or the conversion of debt to equity.

Noncash Investing and Financing Activities,if Material,are