What happened as a result of this transaction?
A)The balance in the Cash account on Northern's books decreased,while the balance in the Cash account on South Company's books increased.
B)South Company has a cash inflow from investing activities.
C)Northern Corporation has a cash outflow from financing activities.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

When Northern Corporation purchases stock in South Company,Northern's cash balance will decrease and South's cash balance will increase.North will report it as a cash outflow for investing activities,and South will report it as a cash inflow from financing activities.

What Happened as a Result of This Transaction