Land Acquired from the Issuance of Common Stock Is Reported

question 57

Multiple Choice

Land acquired from the issuance of common stock is reported

• A) as a financing activity.
• B) as an investing activity.
• C) as an operating activity.
• D) in a separate schedule at the bottom of the statement of cash flows.

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Definitions:

Taxable Gain

The portion of profit or income derived from selling an asset that is subject to taxation.

Sole Shareholder

An individual who owns 100% of the shares of a corporation, making them the exclusive owner.

Stock Exchange

A marketplace where securities, such as stocks and bonds, are bought and sold.

Liability

The state of being legally responsible for something, especially in terms of owing money or other obligations.