As a result of this transaction,
A)Vantage Corporation would have a cash outflow from financing activities.
B)Tandem Company would have a cash inflow from investing activities.
C)The balance in the Cash account on Vantage's books would decrease, while the balance in the Cash account on Tandem Company's books would increase.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

When Vantage Corporation purchase stock in Tandem Corporation, Vantage's cash balance will decrease and Tandem's cash balance will increase. Vantage will report it as a cash outflow for investing activities, and Tandem will report it as a cash inflow from financing activities.

As a Result of This Transaction