Asked by Daman Preet Dhillon on Jun 03, 2024

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A noncash investing activity should be disclosed in a note to the statement of cash flows or on a separate schedule.

Noncash Investing

Involves transactions that do not directly involve cash but affect the investing activities of a company; for example, acquiring assets through a trade or a note.

  • Recognize the reporting requirements for noncash investing and financing activities.
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SC
Stephen ChandlerJun 09, 2024
Final Answer :
True
Explanation :
This statement is true according to GAAP (Generally Accepted Accounting Principles) guidelines. Noncash investing activities, such as the exchange of property or issuance of stock for an acquisition, should be disclosed in a note to the statement of cash flows or on a separate schedule to provide transparency and clarity for investors and analysts.