Some investing and financing activities involve no Cash Flows,so they:

Question

Quizplus · Accepted Answer

Investing and financing activities that involve no cash flows should be reported in a separate section of the cash flow statement called "non-cash financing and investing activities." This section shows the significant financial changes that did not involve actual cash inflows or outflows but have an impact on the financial position of the company. Examples include issuing stock options, converting bonds to stock, and acquiring assets through lease agreements. Including them in the three main sections of the statement of cash flows would distort the true cash flow position of the company.

Some Investing and Financing Activities Involve No Cash Flows,so They