Question:
Explain what is meant by noncash investing and financing activities pertaining to the statement of cash
flows. Give an example of one of these activities
Answer:
Noncash investing and financing activities are transactions that do not increase or decrease cash but are
important investing and financing activities. An example would be the acquisition of property, plant, and
equipment (an investing activity) by issuing either long-term debt or equity securities (a financing
activity). These activities are reported either on the face of the statement of cash flows or in a disclosure
note.
Explain what is meant by noncash investing and financing activities pertaining to the statement of cash
flows. Give an example of one of these activities
Answer:
Noncash investing and financing activities are transactions that do not increase or decrease cash but are
important investing and financing activities. An example would be the acquisition of property, plant, and
equipment (an investing activity) by issuing either long-term debt or equity securities (a financing
activity). These activities are reported either on the face of the statement of cash flows or in a disclosure
note.
