Asked by Royal Empress on Apr 26, 2024
Verified
Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.
Noncash Investing
Activities related to the acquisition and disposal of long-term assets and other investments not involving immediate cash transactions.
- Explain the purpose, format, and significance of significant noncash investing and financing activities on the statement of cash flows.
Verified Answer
LS
Lindsay SidellApr 27, 2024
Final Answer :
Noncash investing and financing activities involve the purchase or sale of assets which are financed via noncash sources, such as borrowing funds or exchanging shares for assets. These activities are disclosed in either a note to the statement of cash flows or in a separate schedule reported with the statement of cash flows.
Learning Objectives
- Explain the purpose, format, and significance of significant noncash investing and financing activities on the statement of cash flows.
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