In preparing a statement of cash flows, preferred shares issued in exchange for land would be reported in the
A)financing activities section.
B)investing activities section.
C)operating activities section.
D)notes to the financial statements.

Question

Quizplus · Accepted Answer

Preferred shares issued in exchange for land are non-cash transactions and are reported in the notes to the financial statements, not in the cash flow statement sections.

In Preparing a Statement of Cash Flows, Preferred Shares Issued