B describe how non-cash investing and financing activities are reported; Flashcards Preview

L1 27 Understanding Cash Flow Statements > B describe how non-cash investing and financing activities are reported; > Flashcards

Flashcards in B describe how non-cash investing and financing activities are reported; Deck (3)
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1
Q

report noncash investing and financing activities ?

A

No. no cash, no report on CF statement

Ex: Real estate financed by seller = investing and financing DECISION = equivalent of borrowing the purchase price, but no cash is involved.

Ex: Exchange of debt for equity = reduction of debt, increase in equity = NO CASH EXCHANGED

2
Q

Where to find Non-Cash trans?

A

Footnotes, supplemental schedule to the CF statement

3
Q

Analyst and non-cf

A

Incorp. into analysis of past and current performance, include their effects in estimating future CF’s