Significant noncash transactions are not reported on the statement of cash flows,but either in a separate schedule or in a note to the financial statements.

Question

Quizplus · Accepted Answer

Significant noncash transactions are not reported in the statement of cash flows because it only includes cash transactions. Instead, they are disclosed in a separate schedule or in a note to the financial statements to provide a complete picture of a company's financial activities.

Significant Noncash Transactions Are Not Reported on the Statement of Cash