Significant noncash transactions are not reported on the statement of cash flows, but in a separate schedule shown either at the bottom of the statement of cash flows or in a note to the financial statements.

Question

Quizplus · Accepted Answer

This is correct as per GAAP guidelines. Significant noncash transactions are typically disclosed in a separate schedule or note, but not directly included in the statement of cash flows.

Significant Noncash Transactions Are Not Reported on the Statement of Cash