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Licemer1 [7]
3 years ago
12

When a transfer is made between cash and cash equivalents with no gain or loss, how is the transaction treated in the statement

of cash flows? Multiple Choice It is not reported. It is included as an investing activity. It is included as a noncash financing activity.
Business
2 answers:
WITCHER [35]3 years ago
8 0

Answer:

It is not reported

Explanation:

when there is a transfer of cash or its equivalent and there is no gain or loss, there is a break even. it can't be said that there has been a transaction between both parties hence such exchange is not reported in the statement of cash flows

A non cash financing activity is a financial activity that doesn't have a direct effect on cash flows, it is usually a long term kind of investments and they are always recorded at the bottom of the statement of cash flows of a company such long term investments include : assets , liabilities and equities.

statuscvo [17]3 years ago
6 0

Answer: The correct answer is "It is not reported.".

Explanation: When a transfer is made between cash and cash equivalents with no gain or loss, the transaction is not reported in the statement of cash flows because it does not represent a true change in cash flow since it does not produce profits or losses.

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Answer:

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Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

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