If a transaction does not involve cash,such as the purchase of supplies on account,it will not be reported on the statement of cash flows.

Name: If a transaction does not involve cash,such as the purchase of supplies on account,it will not be reported on the statement of cash flows.
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Question

Quizplus · Accepted Answer

The statement of cash flows only reports transactions that directly affect an entity's cash and cash equivalents, so non-cash transactions like purchasing supplies on account are not included.

If a Transaction Does Not Involve Cash,such as the Purchase