Transactions That Don't Increase or Decrease Cash,but That Result in Significant

question 96

True/False

Transactions that don't increase or decrease cash,but that result in significant investing and financing activities,are reported either directly after the cash flow statement or in a separate note to the financial statements as noncash activities.

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Definitions:

Proceeds of a Note

The total amount of money generated or to be paid out from a promissory note or financial instrument.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a journal entry made at the end of the previous accounting period.

Interest Accrued

Interest that has been incurred but not yet paid, representing a liability on the balance sheet until it is paid.