While Preparing a Statement of Cash Flows,you Encountered the Following

question 34

Essay

While preparing a statement of cash flows,you encountered the following transaction:
February 1,2011:
Battles Corporation acquired a small office building in exchange for 5,000 shares of its own common stock; par value $10 per share; market value $15 per share.
Should this transaction be shown on the statement of cash flows? Why or why not?

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Definitions:

Measurement Method

The technique or strategy used to assess, quantify, or evaluate a particular variable or attribute.

Progress

The forward or onward movement towards achieving a goal or improving conditions.

Labour Expenses

Expenses related to employee compensation, such as paychecks, bonuses, benefits, and tax contributions.

Labour Force

The total number of people aged 16 and over who are either employed or actively seeking employment.