Shield Company needs to purchase a property to build their headquarters.An investor is willing to exchange land worth $700,000 for shares of common stock.On the statement of cash flows,this transaction would be shown as ________.
A)investing activities
B)non-cash investing and financing activities
C)operating activities
D)financing activities

Question

Quizplus · Accepted Answer

This transaction involves the exchange of non-cash assets (land for shares of common stock) and does not directly involve a cash inflow or outflow. Therefore, it would be classified as a non-cash investing and financing activity on the statement of cash flows.

Shield Company Needs to Purchase a Property to Build Their