The correct answer is D. None of the above.
Significant non-cash transactions are not included in any of the three sections of the cash flow statement. They are reported separately in a note to the financial statements.
Cash flow from operating activities is the cash generated from the company’s core business activities. It includes cash receipts from customers, cash payments to suppliers, and cash payments for expenses.
Cash flow from investing activities is the cash generated from the company’s investment activities. It includes cash receipts from the sale of investments, cash payments for the purchase of investments, and cash payments for capital expenditures.
Cash flow from financing activities is the cash generated from the company’s financing activities. It includes cash receipts from the issuance of debt or equity, cash payments for the repayment of debt, and cash payments for dividends.
Significant non-cash transactions are those that do not involve the receipt or payment of cash. They include items such as the acquisition of an asset through a capital lease, the issuance of stock for property, and the conversion of debt into equity.
These transactions are important to report because they can have a significant impact on the company’s financial position and results of operations. However, they are not included in the cash flow statement because they do not involve the receipt or payment of cash.