A noncash investing activity should be disclosed in a note to the statement of cash flows or on a separate schedule.

Question

Quizplus · Accepted Answer

This statement is true according to GAAP (Generally Accepted Accounting Principles) guidelines. Noncash investing activities, such as the exchange of property or issuance of stock for an acquisition, should be disclosed in a note to the statement of cash flows or on a separate schedule to provide transparency and clarity for investors and analysts.

A Noncash Investing Activity Should Be Disclosed in a Note