Which of the following is a true statement regarding SFAS No. 95?
A)It requires all non-cash investing and financing transactions be reported in the body of the cash flow statement.
B)It requires all non-cash investing and financing transactions be reported as a supplement to the cash flow statement, either in a schedule or in a narrative format.
C)Only cash transactions are reported on the cash flow statement.
D)Only operating transactions are reported on the cash flow statement.

Question

Quizplus · Accepted Answer

SFAS No. 95 requires all non-cash investing and financing transactions be reported as a supplement to the cash flow statement, either in a schedule or in a narrative format. This means that they are not reported in the body of the cash flow statement itself. Only cash transactions are reported on the cash flow statement, but both operating and non-operating cash transactions are included.

Which of the Following Is a True Statement Regarding SFAS