When a transfer is made between cash and cash equivalents with no gain or loss, how is the transaction treated in the statement of cash flows?
A) It is included as an operating activity.
B) It is included as a noncash financing activity.
C) It is included as an investing activity.
D) It is not reported.

Question

Quizplus · Accepted Answer

Transfers between cash and cash equivalents with no gain or loss are not reported in the statement of cash flows as they do not impact cash flows from operating, investing, or financing activities.

When a Transfer Is Made Between Cash and Cash Equivalents