Klein Corp

question 188

Multiple Choice

Klein Corp.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) Using the master T-account approach.
• D) The transaction does not need to be disclosed.

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Definitions:

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a period of time to identify trends and growth patterns.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased in percentage terms from the original figure.

Horizontal Analysis

Comparative financial analysis technique that views financial data over multiple periods to identify trends and growth patterns.

Balance Sheet

A summary statement of a firm's assets, liabilities, and equity held by shareholders, reflecting its financial position at a specific moment.