A Company Acquired Land by Issuing Its Common Stock

question 19

Multiple Choice

A company acquired land by issuing its common stock. How should this transaction be disclosed when a statement of cash flows is prepared?

• A)In a supplemental schedule of noncash investing and financing activities or in a note.
• B)The acquisition of land should be reported as an investing activity and the issuance of the stock as a financing activity.
• C)In a separate section of the statement of cash flows.
• D)The transaction does not need to be disclosed.

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Definitions:

Antipsychotic Drugs

Medications used to treat symptoms of psychosis, including delusions and hallucinations, primarily in mental health conditions.

Dopamine

A type of neurotransmitter in the brain that plays a key role in controlling the reward and pleasure centers, as well as regulating movement and emotional responses.

Receptor Sites

Specific locations on the surface of a cell or neuron where neurotransmitters, hormones, or drugs can bind and elicit a biological response.

Chlorpromazine

An antipsychotic medication used to treat various mental health conditions by altering the actions of chemicals in the brain.