If a company purchases land with its common stock,and no cash changes hands,where would this activity be presented on the statement of cash flows?
A)The financing section of the statement of cash flows.
B)The investing section of the statement of cash flows.
C)The operating section of the statement of cash flows.
D)A note below the statement of cash flows.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

This activity would be presented in a note below the statement of cash flows because it is a significant non-cash transaction. Non-cash investing and financing activities are not reported in the main body of the cash flow statement but are disclosed in the notes to the financial statements.

If a Company Purchases Land with Its Common Stock,and No