A schedule of noncash investing and financing activities is not required when a statement of cash flows is prepared using the indirect method.

Question

Quizplus · Accepted Answer

A schedule of noncash investing and financing activities is required when a statement of cash flows is prepared using the indirect method. This schedule shows the details of noncash transactions that affect investing and financing activities, such as the issuance of stock for noncash assets or the conversion of debt to equity.

A Schedule of Noncash Investing and Financing Activities Is Not