Match these terms with their correct definition.
-represents both an investing and financing activity but does not involve the receipt or payment of cash.

Question

Quizplus · Accepted Answer

Noncash investing and financing activities are transactions that affect the financial position of a company but do not involve cash flows. These activities are important for understanding a company's financial operations but are not reflected in the cash flow statement as cash inflows or outflows. Instead, they are usually disclosed in the notes to the financial statements. Examples include acquiring assets through the issuance of equity or debt, exchanges of noncash assets, and capital leases.

Match These Terms with Their Correct Definition