Significant Noncash Activities definitions Flashcards
Significant Noncash Activities definitions
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Significant Noncash Activities Major investing or financing transactions that do not involve cash and are disclosed separately at the bottom of the statement of cash flows. Statement of Cash Flows Financial report detailing cash inflows and outflows from operating, investing, and financing activities during a period. Investing Activities Transactions involving the acquisition or disposal of long-term assets, typically reported in the cash flow statement. Financing Activities Transactions related to changes in a company's equity and borrowings, such as issuing stock or repaying debt. Disclosure Supplementary information provided at the bottom of the cash flow statement to inform users about noncash transactions. Note Payable Written promise to pay a specified amount, often used in noncash exchanges for assets like land. Land Long-term asset that may be acquired through noncash exchanges, such as trading for a note payable. Bonds Payable Long-term liability representing amounts owed to bondholders, which can be retired through noncash means. Common Stock Equity security issued by a company, sometimes exchanged directly for liabilities without cash involvement. Par Value Nominal value assigned to each share of stock, used in accounting for equity transactions. Additional Paid-In Capital (APIC) Equity account reflecting amounts received from shareholders above the par value of issued stock. Journal Entry Accounting record documenting the details of a transaction, including noncash exchanges between accounts. Cash Account Ledger account tracking a company's available cash, unaffected by significant noncash activities. Equity Ownership interest in a company, which can be affected by noncash transactions like issuing stock for debt. Financial Statement Users Individuals or entities analyzing financial reports, who rely on disclosures for a complete understanding of company activities.
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