Non Cash Activities Such as an Exchange of Shares for a Piece

question 100

True/False

Non cash activities such as an exchange of shares for a piece of equipment need to be disclosed either on a separate schedule at the bottom of the statement of cash flows or in a note to the financial statements.

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Definitions:

Fraudulent Misrepresentation

The act of intentionally making false statements to induce another party to enter into a contract, resulting in harm or damage.

Intentional Misrepresentation

Deliberate false statement by one party aimed at getting another party to enter into an agreement.

Mutual Mistake

An error made by both parties in a contract that can render the agreement void.

Negligent Misrepresentation

A false statement of material fact made by a person who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.