Klein Corp

question 1

Multiple Choice

Klein Corp.acquired land by issuing its common stock.How should this transaction be disclosed when a statement of cash flows is prepared?

• A)It should be disclosed 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)It should be included in a printout of the general ledger Common Stock account with the statement of cash flows.
• D)The transaction does not need to be disclosed.

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Definitions:

Defense Mechanism

A psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Suppressing Unpleasant Emotions

The deliberate effort to control or hide feelings that are perceived as negative or uncomfortable.

Circumstances

The specific conditions or factors affecting a situation, event, or individual at a particular time.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, blocking external events from awareness.