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If Non-Cash Investing and Financing Activities Are Part Cash and Part

Question 62

Multiple Choice

If non-cash investing and financing activities are part cash and part non-cash, which of the following is true?


A) Companies should report only the cash portion on the statement of cash flows and ignore the non-cash component.
B) Companies should report the non-cash component in a separate note and report the cash portion on the statement of cash flows.
C) Companies should report the cash portion lass the cash equivalent of the non-cash component on the statement of cash flows.
D) None of these answer choices are correct.

Correct Answer:

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