The Acquisition of Land by Issuing Common Stock Is

question 118

Multiple Choice

The acquisition of land by issuing common stock is

• A) only reported if the statement of cash flows is prepared using the direct method.
• B) a cash transaction that is reported in the investing section in the body of the statement of cash flows.
• C) a noncash transaction that is reported in the operating section in the body of the statement of cash flows.
• D) a noncash transaction that is disclosed in a supplementary schedule attached to the statement of cash flows.

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Definitions:

Sales Discount

A reduction in the price of goods or services offered to customers, usually to prompt early payment or bulk purchases.

FOB Shipping Point

A shipping term indicating that the buyer takes responsibility for loss or damage once the goods are shipped, and pays the shipping cost.

Terms

Conditions that are agreed upon in a financial or business arrangement.

Merchandise Inventory

The total value of a company's goods that are available for sale at the end of an accounting period.