Question

Companies are required to report material noncash transactions from ____ and ____ activities in either a supplementary schedule to the statement of cash flows or as a disclosure in the notes to the financial statements.

Answer 1

Companies must report noncash transactions related to investing and financing activities to provide a complete view of financial activities. This can be done in a supplementary schedule or in the footnotes to the financial statements.

Step-by-step explanation:

Companies are required to report material noncash transactions from investing and financing activities in either a supplementary schedule to the statement of cash flows or as a disclosure in the notes to the financial statements. These reports provide a more comprehensive overview of a company's financial activities beyond the cash transactions recorded in the statement of cash flows. The disclosure of noncash transactions ensures that stakeholders, such as investors and creditors, have all the relevant information necessary to assess the company's financial health and performance.