The acquisition of land by issuing common stock is
A) a noncash transaction which is not reported in the body of a statement of cash flows.
B) a cash transaction and would be reported in the body of a statement of cash flows.
C) a noncash transaction and would be reported in the body of a statement of cash flows.
D) only reported if the statement of cash flows is prepared using the direct method.

Question

Quizplus · Accepted Answer

The acquisition of land by issuing common stock is considered a noncash investing and financing activity. These types of transactions are not reported in the main body of the statement of cash flows but are instead disclosed in the notes to the financial statements or in a separate schedule.

The Acquisition of Land by Issuing Common Stock Is