How Should Significant Non-Cash Transactions Be Reported in the Statement

question 19

Multiple Choice

How should significant non-cash transactions be reported in the statement of cash flows?

• A)They should be incorporated in the statement of cash flows in a section labeled, "Significant Noncash Transactions."
• B)Such transactions should be incorporated in the section (operating, financing, or investing) that is most representative of the major component of the transaction.
• C)These noncash transactions are not to be incorporated in the statement of cash flows.They appear in a note to the financial statements.
• D)They should be handled in a manner consistent with the transactions that affect cash flows.

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