While Preparing a Statement of Cash Flow, You Encountered the Following

question 84

Essay

While preparing a statement of cash flow, you encountered the following transaction:
February 1, 20A: Zorro Corporation acquired a small office building in exchange for 5,000 shares of its own common shares; par value $10 per share; market value $15 per share.
(a) Should this transaction be included in the calculations on the statement of cash flows or shown in the notes?
(b) Explain your answer.

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Definitions:

Results View

The display area where the outcomes of a particular action, search, or computation are shown.

Design View

A feature in software applications that allows users to set up or modify the structure of a database or document layout.

SQL

Structured Query Language, a standardized programming language used for managing and manipulating relational databases.

Query Window

A UI element in database software where users can type and execute SQL queries to retrieve or manipulate data.