Occasionally, investing and financing activities take place without affecting cash; these are referred to as noncash investing and financing activities. A direct exchange of noncurrent balance sheet items may occur; these noncash transactions need not be disclosed in a supplementary schedule attached to the statement of cash flows.

The answer is:

A.) True

B.) False: Occasionally, investing and financing activities take place without affecting cash; these are referred to as noncash operating activities.

C.) False: A direct exchange of noncurrent balance sheet items may occur; these noncash transactions must be disclosed in a supplementary schedule attached to the statement of cash flows

D.) Both B and C

E.) None of the above