Purchase of Land in Exchange for Stock

question 60

Multiple Choice

purchase of land in exchange for stock

• A)operating activities
• B)investing activities
• C)financing activities
• D)noncash item

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Definitions:

Revenue In Full

The total amount of income generated by the sale of goods or services before any deductions are made.

Percentage-Of-Completion

An accounting method that recognizes revenues and expenses in proportion to the completion of a contracted work or project.

Economic Substance

The underlying economic reality of a transaction which determines its legal and tax implications, regardless of its form.

Inventory Value

The total cost assigned to goods and materials held in stock by a business at a specific point in time.