Yanks Company acquired a building by issuing common stock with a market value of $490,000. This transaction would be recorded on the statement of cash flows as a(n):
A)investing activity.
B)operating activity.
C)financing activity.
D)noncash investing and financing activity on a separate schedule on the statement of cash flows.

Question

Quizplus · Accepted Answer

This transaction involves acquiring an asset (building) by issuing stock, which does not involve cash. Therefore, it is reported as a noncash investing and financing activity on a separate schedule in the statement of cash flows.

Yanks Company Acquired a Building by Issuing Common Stock with a Market