The appropriate statement of cash flows activity category for the purchase of land in exchange for common shares is
A)Operating
B)Financing
C)Investing
D)Schedule of noncash investing or financing activity
E)Not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

The purchase of land in exchange for common shares is a noncash transaction that does not affect the company's cash flows directly. Therefore, it is reported in the schedule of noncash investing and financing activities, which is a supplementary part of the statement of cash flows.

The Appropriate Statement of Cash Flows Activity Category for the Purchase