Noncash investing and financing transactions, such as the exchange of common stock to purchase assets, represent significant investing and financing activities and are reflected either in a schedule separate from the statement of cash flows or in a separate note to the financial statements.

Question

Quizplus · Accepted Answer

Noncash investing and financing transactions are significant activities that do not involve cash flows and are therefore disclosed separately to provide a complete picture of a company's financial activities.

Noncash Investing and Financing Transactions, Such as the Exchange of Common