Assume that the Ecuyer Company uses the indirect method to depict cash flows.Indicate where, if at all, stock issued for equipment would be classified on the statement of cash flows.
A)Operating activities section.
B)Investing activities section.
C)Financing activities section.
D)Does not represent a cash flow.

Question

Quizplus · Accepted Answer

Stock issued for equipment does not involve cash, so it does not appear in the cash flow statement. Instead, it is a non-cash investing and financing activity typically disclosed in a separate schedule or note.

Assume That the Ecuyer Company Uses the Indirect Method to Depict