In preparing a Statement of Cash Flows, you encountered the following transaction of February 1, 2013: acquired a small office building in exchange for 5,000 of our common shares; market value $15 per share. How should this transaction be reported on the Statement of Cash Flows?
A) Report as a concurrent inflow and outflow of cash on the Statement of Cash Flows.
B) Report as a noncash investing and financing activity.
C) Not reported on the Statement of Cash Flows because it did not affect cash, but details explained in the disclosure notes.
D) Report on a Statement of Cash Flows as an investing activity.

Question

Quizplus · Accepted Answer

The transaction did not involve any cash, so it is not reported on the Statement of Cash Flows. However, the details of the transaction should be explained in the disclosure notes.

In Preparing a Statement of Cash Flows, You Encountered the Following