Canada Company needs to purchase a property to build their headquarters.An investor is willing to exchange land with a market value of $700,000 for shares of common stock.On the statement of cash flows,this transaction would be shown as ________.
A) investing activities
B) non-cash investing and financing activities
C) operating activities
D) financing activities

Question

Quizplus · Accepted Answer

The transaction involves a non-cash exchange of assets (land for common stock), which is considered a non-cash investing and financing activity. This means it is not shown as part of operating activities, financing activities or investing activities.

Canada Company Needs to Purchase a Property to Build Their