Where are noncash investing and financing activities reported?
A) Noncash investing and financing activities are reported in the financing activities section of the statement of cash flows.
B) Noncash investing and financing activities are reported in the investing activities section of the statement of cash flows.
C) Noncash investing and financing activities are reported in a separate schedule accompanying the statement of cash flows.
D) Noncash investing and financing activities are not reported at all in connection with the statement of cash flows.

Question

Quizplus · Accepted Answer

Noncash investing and financing activities are not reported in the operating, investing, or financing sections of the statement of cash flows. Instead, they are reported in a separate schedule accompanying the statement of cash flows, typically labeled as a supplemental schedule of noncash activities. This schedule provides important information about noncash transactions, such as the issuance of stock in exchange for assets or the conversion of debt into equity.

Where Are Noncash Investing and Financing Activities Reported