Which of the following transactions is not reported in the statement of cash flows as a cash flow from investing activities?
A)Selling a depreciable asset for cash at a loss.
B)Purchasing a patent using cash.
C)Purchasing land in exchange for common stock.
D)Purchasing shares of common stock of another company using cash.

Question

Quizplus · Accepted Answer

Purchasing land in exchange for common stock is reported in the statement of cash flows as a noncash investing and financing activity, since it involves the exchange of a noncash asset (the common stock) for a new asset (the land). Selling a depreciable asset for cash at a loss, purchasing a patent using cash, and purchasing shares of common stock of another company using cash are all reported in the statement of cash flows as cash flows from investing activities.

Which of the Following Transactions Is Not Reported in the Statement