A Company Acquired Land by Issuing Common Shares

question 39

Multiple Choice

A company acquired land by issuing common shares.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) as a investing activity (for the acquisition of land) and as a financing activity (for the issuance of shares)
• C) in a separate section of the statement of cash flows
• D) does not need to be disclosed

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Definitions:

Emotional Reasoning

A cognitive process where a person concludes that their emotional reaction reflects the way things really are, despite contrary evidence.

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A structured investigation aimed at discovering, interpreting, and revising facts, theories, applications, or processes within a specific field.

Old Sayings

Traditional phrases or proverbs that express wisdom or truth based on common sense or experience.

Precision

The degree to which repeated measurements under unchanged conditions show the same results.