Why are non-cash transactions, such as the exchange of common stock for a building, included on a statement of cash flows? How are these non-cash transactions disclosed?
A financial statement is a report for outside users concerning a business's activities and is published every quarter by publicly traded companies. The three required statements that must be issued by law are the income statement, the balance sheet, and the statement of cash flows.
Answer and Explanation: 1
Major non-cash transactions, such as the exchange of stock for a building, are included on the statement of cash flow because they are substantial...
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fromChapter 2 / Lesson 4
Learn about statements of cash flows. Discover what a cash flow statement is and see the indirect method statement of cash flows, net cash flows, and other examples.