Financing and Investing Activities Not Involving Cash – The statement of cash flows is normally a required basic financial statement for each period for which an earnings statement is presented. The statement should include a separate schedule listing the financing and investing activities not involving cash.
Required
1. What are financing and investing activities not involving cash?
2. What are two types of financing and investing activities not involving cash?
3. Explain what effect, if any, each of the following seven items would have on the statement of cash flows.
a. Accounts receivable
b. Inventory
c. Depreciation
d. Deferred tax liability
e. Issuance of long-term debt in payment for a building
f. Payoff of current portion of debt
g. Sale of a fixed asset resulting in a loss
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