Transnational Company Just Started in Business and Was Looking for Additional

question 7

Multiple Choice

Transnational Company just started in business and was looking for additional capital in order to purchase a property to build their headquarters. They found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company. How would this transaction be shown on the statement of cash flows?

• A) In the investing activities section
• B) In the noncash investing and financing activities section
• C) In the operating activities section
• D) In the financing activities section

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Definitions:

China

A country in East Asia, known for its vast history, cultural significance, and as a major global economic power.

Violate

To break or fail to comply with a rule or formal agreement.

Limited Liability Partnership

A business structure that allows partners to have limited liabilities, protecting personal assets from business debts.

Owners

Individuals or entities that possess an item or asset and have legal rights and control over it.