The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:
A) Investing activities.
B) Reconciliation of cash balance.
C) Operating activities.
D) Schedule of noncash investing or financing activity.
E) Financing activities.

Question

Quizplus · Accepted Answer

The purchase of land in exchange for common stock would be considered a non-cash investing activity and thus would be reported in the Schedule of Noncash Investing or Financing Activity section of the statement of cash flows.

The Appropriate Section in the Statement of Cash Flows for Reporting