A financial activity that involves the owner’s equity and liabilities but has no effect on the inflows and outflows of cash. A significant amount involved in a noncash transaction is included in the footnotes of a cash flow statement.

More On This Topic

Link to This Definition
Did you find this definition of NONCASH TRANSACTION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary