A Company Acquired Some Land (Independently Appraised at $12,000)and Paid

question 6

Multiple Choice

A company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common shares (par $10 per share; no market price was quoted) .How should this be reported on the statement of cash flows?

• A)Report $12,000 as inflow and outflow of cash.
• B)Report $12,000 as an inflow of cash.
• C)Should not be reported on the statement of cash flows.
• D)Report on a schedule of significant noncash transactions if it is material.

---

Definitions:

Case Study

An observation technique in which one person is studied in depth in the hope of revealing universal principles.

Random Sampling

A technique used in research to select a group of subjects for a study from a larger population, ensuring that every individual has an equal chance of being chosen.

Wording Effects

The impact that the choice of words, phrasing, or framing of questions can have on people's responses in surveys or experiments.

Professional Basketball Players

Athletes trained to compete at the highest level in the sport of basketball, often associated with leagues such as the NBA.