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

Question

Quizplus · Accepted Answer

The purchase of land in exchange for common stock is a noncash transaction and should be reported in the schedule of noncash investing or financing activities, not in the main sections of the cash flow statement.

The Appropriate Section in the Statement of Cash Flows for Reporting