In Preparing a Statement of Cash Flows, You Encountered the Following

question 80

Multiple Choice

In preparing a Statement of Cash Flows, you encountered the following transaction of February 1, 2013: acquired a small office building in exchange for 5,000 of our common shares; market value $15 per share. How should this transaction be reported on the Statement of Cash Flows?

• A) Report as a concurrent inflow and outflow of cash on the Statement of Cash Flows.
• B) Report as a noncash investing and financing activity.
• C) Not reported on the Statement of Cash Flows because it did not affect cash, but details explained in the disclosure notes.
• D) Report on a Statement of Cash Flows as an investing activity.

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Definitions:

Organism

Any individual living entity that can react to stimuli, reproduce, grow, and maintain homeostasis as a self-sustaining unit.

Human Organism

A term referring to the entire physical, mental, and emotional structure of a human being.

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In the imperial system, a measure of weight that equals approximately 0.453592 kilograms.

Fetal

Pertains to a stage of human development inside the womb, from conception until birth.