The issue of shares to purchase non-current assets will be disclosed:
A) as a financing activity.
B) as an investment activity.
C) as both a financing and investment activity.
D) in the note disclosure to the statement of cash flows.

Question

Quizplus · Accepted Answer

Issuing shares to purchase non-current assets does not directly affect cash flow, hence it is not classified under financing or investing activities in the statement of cash flows. Instead, it is disclosed in the notes to the statement of cash flows to provide additional information about the transaction.

The Issue of Shares to Purchase Non-Current Assets Will Be