Wish Corporation acquired a computer for $15,000 and paid for it in full by issuing 1,000 shares of its own common stock,par $10 (current market price $15 share).This transaction should not be reported within the statement of cash flows because cash was neither received nor disbursed.

Question

Quizplus · Accepted Answer

This transaction does not involve any cash movement, as the computer was acquired in exchange for shares, not cash, and thus does not appear in the statement of cash flows.

Wish Corporation Acquired a Computer for $15,000 and Paid for It