Transnational Company just started in business and was looking for additional capital in order to purchase a property to build their headquarters. They found an investor who was willing to sell them land worth $500 000 in exchange for shares in the company. How would this transaction be shown on the cash flow statement?
A)In the non- cash investing and financing activities section
B)In the financing activities section
C)In the investing activities section
D)In the operating activities section

Question

Quizplus · Accepted Answer

This transaction involves exchanging shares for land, which is a non-cash transaction. It should be reported in the non-cash investing and financing activities section of the cash flow statement.

Transnational Company Just Started in Business and Was Looking for Additional