An Asset (Land) Was Purchased and Payment in Full Was

question 133

Multiple Choice

An asset (land) was purchased and payment in full was made by issuing the company's common shares.No cash was paid.Therefore,this transaction should be reported on the Statement of Cash Flows:

• A)as an "Adjustment to reconcile net income to operating activities."
• B)should not be reported on the Statement of Cash Flows but details explained in the disclosure notes.
• C)as an outflow of cash.
• D)As a non-cash exchange.

---

Definitions:

Deeply Rooted

Describes beliefs, values, or situations that are firmly established and not easily changed.

Intangibles

Assets or values that cannot be physically touched, such as goodwill, brand recognition, or intellectual property.

Tangibles

Physical items or properties that can be seen, touched, or measured.

Logrolling

Logrolling involves the exchange of favors, especially in politics, by reciprocal voting for each other's proposed legislation.