Significant noncash transactions are NOT reported on the statement of cash flows,but in a separate schedule shown either at the bottom of the statement of cash flows or in a note to the financial statements.

Question

Quizplus · Accepted Answer

Significant noncash transactions are not reported in the body of the statement of cash flows because this statement is focused on presenting cash inflows and outflows. Instead, these transactions are disclosed in a separate schedule or in a note to the financial statements to provide a complete picture of a company's financial activities.

Significant Noncash Transactions Are NOT Reported on the Statement of Cash