Which of the following statements about shares issued in exchange for assets is true?
A)they impact cash flow
B)they are disclosed in a note to the statement of cash flows
C)they are classified as operating activities
D)they are classified as investment activities

Question

Quizplus · Accepted Answer

Shares issued in exchange for assets do not involve cash transactions, so they do not impact cash flow directly. Instead, they are disclosed in a note to the statement of cash flows to provide information about non-cash investing and financing activities.

Which of the Following Statements About Shares Issued in Exchange