Investing transactions that do not directly and immediately affect cash are
A)included in the cash flow statement.
B)included on a supplemental schedule to the cash flow statement.
C)reported separately in the cash flow statement.
D)reported separately in the retained earnings statement.

Question

Quizplus · Accepted Answer

Investing transactions that do not directly and immediately affect cash are included on a supplemental schedule to the cash flow statement. This schedule is called the "non-cash investing and financing activities" schedule and it provides additional information about investing and financing activities that are not reflected in the cash flow statement. Examples of these activities include the issuance of stock in exchange for assets, the conversion of debt to equity, and the acquisition of assets through the assumption of liabilities.

Investing Transactions That Do Not Directly and Immediately Affect Cash