The accounting principle which requires that noncash financing and investing activities are reported on the statement of cash flows is the principle of:
A) Materiality.
B) Going concern.
C) Historical cost.
D) Full disclosure.
E) Business entity.

Question

Quizplus · Accepted Answer

The principle of full disclosure requires that all relevant financial information, including noncash financing and investing activities, be reported in the financial statements to provide a complete picture of a company's financial situation.

The Accounting Principle Which Requires That Noncash Financing and Investing