Some investing and financing transactions do not involve cash and therefore
A)appear on the statement of cash flows under operating, investing or financing activities, as appropriate.
B)appear on the statement of cash flows under operating activities.
C)appear on the statement of cash flows under operating or financing activities, as appropriate.
D)appear on the statement of cash flows under investing or financing activities, as appropriate.
E)do not appear on the statement of cash flows.

Question

Quizplus · Accepted Answer

Non-cash investing and financing transactions do not appear on the statement of cash flows because this financial statement is specifically designed to report cash inflows and outflows. Non-cash transactions are usually disclosed in the notes to the financial statements or in a separate schedule.

Some Investing and Financing Transactions Do Not Involve Cash and Therefore