Company F
Company F Reported the Following Information -Refer to the Figure Company F

question 116

Multiple Choice

Company F
Company F reported the following information:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Land } & \$ 350,000 & \$ 100,000 \\\text { Common shares } & 450.000 & 200.000\end{array}$
-Refer to the figure Company F.An analysis of records indicated that there were no cash flow effects resulting from the changes in the two accounts presented in the figure.How should the changes in these accounts be reported on a statement of cash flows?

• A) The company should report $250,000 for the sale of land as an investing activity and $250,000 for the issuance of shares as a financing activity.
• B) The company should report $250,000 as noncash investing and financing activities for the acquisition of land by the issuance of common shares.
• C) The company should report the issuance of common shares to acquire land in the financing activity section with a net cash flow effect of zero.
• D) The company should report the acquisition of land by the issuance of common shares in the investing activities section with a net cash flow effect of zero.

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Definitions:

Retail Sales

The direct sale of goods and services to consumers, typically through stores or online platforms.

Managerial Problem Solving

The process by which managers identify, analyze, and resolve issues within an organizational context using strategic thinking, decision-making techniques, and leadership skills.

Certainty

A condition in decision-making where all necessary information is known and the outcome of a decision is predictable.

Best Solution

The optimal resolution or answer to a problem that maximizes effectiveness and efficiency while minimizing downsides and costs.