Which type of transactions are required by generally accepted accounting principles to be disclosed either in a separate schedule at the bottom of the statement of cash flows or in a footnote to the financial statements?

Question

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Generally accepted accounting principles require significant noncash transactions to be disclosed either in a separate schedule at the bottom of the statement of cash flows or in a footnote to the financial statements. Noncash transactions can include exchanges of non-monetary assets or liabilities, such as the acquisition of assets through a capital lease or the issuance of shares of stock in exchange for property or services. Disclosing these transactions separately helps users of financial statements to better understand how the company is generating or expending its resources. Cash transactions that are significant but not noncash do not necessarily require separate disclosure.

Which Type of Transactions Are Required by Generally Accepted Accounting