If a Company Purchases Land with Its Common Stock,and No

question 37

Multiple Choice

If a company purchases land with its common stock,and no cash changes hands,where would this activity be presented on the statement of cash flows?

• A)The financing
• B)The investing
• C)The operating
• D)A note below the statement of cash flows.
• E)None of the answer choices is correct.

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Definitions:

Special Order

A request for a product or service that is not part of a company’s standard offering, often requiring customization or special handling.

Opportunity Cost

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Opportunity Cost

The foregone benefit that would have been derived by an option not chosen.

Alternative Action

Potential different courses of action considered in a decision-making process.