The correct answer is: C. Operating and non-operating cash flow information
AS-3, Statement of Cash Flows, requires that an entity present a statement of cash flows that reports cash flows from operating, investing, and financing activities. The statement of cash flows should report cash flows from operating activities using the direct method or the indirect method. The direct method reports cash receipts and cash payments from operating activities. The indirect method reports net income and then adjusts it for changes in non-cash working capital items and other non-cash items to arrive at cash flow from operating activities.
Option A is incorrect because conversion of debt to equity is a financing activity.
Option B is incorrect because acquiring an asset through a lease is an investing activity.
Option D is incorrect because purchasing a building by giving a mortgage to the seller is a financing activity.