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

Question

Quizplus · Accepted Answer

The transaction involves issuing shares instead of cash, so it does not affect the cash flow statement.

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