Land Acquired from the Issuance of Common Stock Is Reported

question 79

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:

Retired

The status of no longer being active in one's profession or job due to reaching a certain age or voluntary choice, often resulting in pension or retirement benefits.

Fully Depreciated

The state of an asset when its book value is reduced to zero through depreciation, signifying it has recognized the expense of its full useful life.

Salvage Value

The estimated sell-back value of an asset once it surpasses its life of effectiveness.

Book Value

The net value of a company's assets minus its liabilities, representing the shareholders' equity on a per share basis.