Cash flows from extraordinary transactions and other events whose effects are included in net income, but which are not related to operations, should be reported either as investing activities or as financing activities.

Question

Quizplus · Accepted Answer

Extraordinary transactions and other events that affect net income but are not related to operations are classified as either investing or financing activities in the statement of cash flows, as they do not pertain to the primary, day-to-day operations of the business.

Cash Flows from Extraordinary Transactions and Other Events Whose Effects