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Harlowe Corp, a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows.
-Issue of common shares in exchange for equipment:
A)Operating activities section
B)Investing activities section
C)Financing activities section
D)Does not represent a cash flow

Question

Use the following information for questions 
Harlowe Corp, a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows.
-Issue of common shares in exchange for equipment:
A)Operating activities section
B)Investing activities section
C)Financing activities section
D)Does not represent a cash flow

Quizplus · Accepted Answer

The issue of common shares in exchange for equipment does not involve cash and therefore does not appear on the statement of cash flows.

Use the Following Information for Questions