If Common Stock Was Issued to Acquire an $8,000 Machine

question 12

Multiple Choice

If common stock was issued to acquire an $8,000 machine, how would the transactionappear on the statement of cash flows?

• A) It would depend on whether you are using the direct or the indirect method.
• B) It would be a positive $8,000 in the financing section and a negative $8,000 in the investing section.
• C) It would be a negative $8,000 in the financing section and a positive $8,000 in the investing section.
• D) It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities.

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