Shield Company Needs to Purchase a Property to Build Their

question 73

Multiple Choice

Shield Company needs to purchase a property to build their headquarters.An investor is willing to exchange land worth $700,000 for shares of common stock.On the statement of cash flows,this transaction would be shown as ________.

• A)investing activities
• B)non-cash investing and financing activities
• C)operating activities
• D)financing activities

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Definitions:

Officers

Individuals appointed by a company's board of directors who are responsible for managing the daily operations and executing the strategic plans of the corporation.

Directors

Individuals elected by shareholders to oversee and make policy decisions for a corporation, setting its strategic direction and ensuring governance.

Majority Vote

A decision-making process where the outcome is determined by more than half of the votes cast by a group.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests in the company.