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Revealing your company's non-cash workouts is essential when striving to form a comprehensive overview of your current activity.

Non-cash investing

Non-cash activity is disclosed as part of an extension or footnote to the standard cash flow statement. Noncash investing and financing transactions are disclosed as supplementary information to a report of cash flows because a secondary purpose of cash flow reporting is to present facts about investing and financing actions. Non-cash investing and financing transactions, generally, impact future cash flows.

Examples include

  • Direct issuance of common stock to purchase assets.
  • Conversion of bonds into common stock.
  • Issuance of debt to purchase assets.

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