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    Schedule for non cash investing and financing activities

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    Why are noncash investing and financing activities listed on a separate schedule accompanying the statement of cash flows?

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    The reason is that this explains the changes in balance sheet which are non cash in nature. If a company buys land against common stock, both these items will increase in the ...

    Solution Summary

    The solution explains why there is a separate schedule for non cash investing and financing activities in the statement of cash flows