Asked Feb 12, 2020

Explain what is meant by noncash investing and financing activities pertaining to the statement of cash flows. Give an example of one of these activities.


Expert Answer

Step 1

The cash flow statement is prepared to show the actual cash movements in the business. The cash flow statement include 

  1. Cash flow from operation activities.
  2. Cash flow from investment activities.
  3. Cash flow from financing activities.

The non cash investing and financing activities are those activities which does not impact cash directly however their impact is si...

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