Noncash investing and financing transactions, such as the exchange of common shares to purchase assets, represent significant investing and financing activities and are reported in a note to the financial statements.

Question

Quizplus · Accepted Answer

Noncash investing and financing transactions are indeed significant but are not reported in the statement of cash flows. Instead, they are disclosed in the notes to the financial statements to provide a complete picture of a company's investing and financing activities.

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