A Company Acquired Land by Issuing Its Common Stock

question 19

Multiple Choice

A company acquired land by issuing its common stock. 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)The acquisition of land should be reported as an investing activity and the issuance of the stock as a financing activity.
• C)In a separate section of the statement of cash flows.
• D)The transaction does not need to be disclosed.

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Definitions:

Early Death

The occurrence of an individual's demise at a younger age than the statistical average life expectancy.

White-Collar Crime

Nonviolent crime committed by individuals or corporations in the course of their professional lives.

Street Crime

Denotes criminal activities that occur in public places, typically including theft, vandalism, and violent acts.

Greed

An excessive desire to acquire or possess more than one needs or deserves, especially with respect to material wealth.