The Acquisition of Land by Issuing Common Stock Is

question 37

Multiple Choice

The acquisition of land by issuing common stock is

• A)a noncash transaction that is not reported in the body of a statement of cash flows.
• B)a cash transaction and would be reported in the body of a statement of cash flows.
• C)a noncash transaction and would be reported in the body of a statement of cash flows.
• D)only reported if the statement of cash flows is prepared using the direct method.

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Definitions:

Foreign Subsidiary

A company owned in part or whole by another company from a different country, operating under the laws of the country where it is located.

Cash

Money in the form of bills or coins, available for transactions or as part of an organization's liquid assets.

Functional Currency

The primary currency used by a business entity in its financial statements, reflecting the economic environment in which it primarily operates.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.