Land Acquired from the Issuance of Ordinary Shares Is Reported

question 144

Multiple Choice

Land acquired from the issuance of ordinary shares is reported

• A) as a financing activity.
• B) as an investing activity.
• C) as an operating activity.
• D) in a separate note or supplementary schedule to the financial statements.

---

Definitions:

Capacity Utilization

A measure of how effectively an entity uses its production capacity to produce goods, expressed as a percentage of total potential output.

Cyclical Industry

An industry highly sensitive to the economic cycle, experiencing rapid growth in booming economies and significant declines during recessions.

Automobile Industry

The automobile industry encompasses the wide range of companies and activities involved in the design, manufacturing, marketing, and selling of motor vehicles.

Tobacco Industry

Comprises companies and entities that manufacture, market, and distribute tobacco and tobacco-related products.