Cash Flow Question

[PassOrNothing]

For the question below, wouldn’t the reduction in debt be accounted for in “financing activites section?” Thanks for looking into this!
Q) Company is invovled in an exchange of debt for equity. In which of the following sections of the CF statement would Maritza record this transaction?
A) “Foonotes to the CF statement.”

 

[edupristine]

Yes, it not includes in company cash flow statement because here actual cash is not moving in or out from company. You can mention it in footnotes.