Significant non-cash transactions are
A) shown in the statement of cash flows when the direct method of presentation is used.
B) included as part of the investing section of the statement of cash flows as equal cash inflows and outflows.
C) are included as part of the financing section of the statement of cash flows as equal cash inflows and outflows.
D) disclosed when the indirect method of preparing a statement of cash flows is used.
E) disclosed in a schedule that follows the statement of cash flows.

Question

Quizplus · Accepted Answer

Significant non-cash transactions are not reported in the statement of cash flows itself because they do not involve cash flows. Instead, they are disclosed in a separate schedule or note that accompanies the financial statements, providing details about these transactions to users of the financial statements.

Significant Non-Cash Transactions Are