Problem:
As the name implies, non-cash financing activities involve financial transactions for purchase that do not involve cash. An example of a non-cash financing activity would be if you own a business and need to purchase new furniture and you make that purchase with a company credit card. Other examples of non-cash purchasing would be obtaining a loan or signing a note payable to purchase the new furniture.
This submission will provide real life examples of Non-Cash Financing Activities and the importance and reasons for disclosure in the financial statements.