A Company Acquired Land by Issuing Its Common Stock

question 19

Multiple Choice

A company 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)In a separate section of the statement of cash flows.
• D)The transaction does not need to be disclosed.

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Definitions:

Contaminated Land

Areas of land polluted by hazardous substances which pose risks to health or the environment.

Provincial Jurisdiction

The authority granted to provincial or state governments to legislate and govern over certain matters within their geographic boundaries.

Environmental Matters

Issues and considerations related to the natural environment, including pollution, resource depletion, and conservation efforts.

Navigable Waters Protection Act

A law aimed at protecting the public's right to navigation in navigable waters.