A noncash investing transaction should be disclosed as a note to the statement of cash flows.

Name: A noncash investing transaction should be disclosed as a note to the statement of cash flows.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because noncash investing transactions like exchanging assets or issuing stock do not involve cash flows and therefore cannot be reported in the statement of cash flows. They are instead disclosed as notes to the statement of cash flows.

A Noncash Investing Transaction Should Be Disclosed as a Note