A Company Acquired Some Land (Independently Appraised at $12,000) and Paid

question 77

Multiple Choice

A company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common shares (par $10 per share; no market price was quoted) . How should this be reported on the statement of cash flows?

• A) Report $12,000 as inflow and outflow of cash.
• B) Report on a schedule of significant noncash transactions if it is material.
• C) Report $12,000 as an inflow of cash.
• D) Should not be reported on the statement of cash flows.

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Definitions:

Eysenck

A psychologist known for his work in the fields of personality, behavior genetics, and the biological basis of intelligence.

Extraversion-Introversion

A personality dimension that characterizes individuals on a continuum from outgoing and energy-gathering from external sources (extraversion) to quiet and energy-gathering from internal sources (introversion).

Autonomic Reactivity

The degree to which the autonomic nervous system responds to stress or emotional stimuli, affecting heart rate, breathing, and other involuntary functions.

Intelligence

The ability to acquire and apply knowledge and skills.