Important non-cash investing and financing activities

Question

Quizplus · Accepted Answer

Non-cash investing and financing activities, such as the exchange of non-monetary assets or the issuance of stock for a debt, do not involve actual cash transactions and therefore do not belong in the investing and financing section or the operating section of the Statement of Cash Flows. Instead, they should be reported in a separate schedule of non-cash investing and financing activities, which is typically included as a supplement to the statement of cash flows.

Important Non-Cash Investing and Financing Activities