The acquisition of land by issuing common shares is
A) a noncash transaction which is not reported in the body of a cash flow statement.
B) a cash transaction and would be reported in the body of a cash flow statement.
C) a noncash transaction and would be reported in the body of a cash flow statement.
D) only reported if the cash flow statement is prepared using the direct method.

Question

Quizplus · Accepted Answer

The acquisition of land by issuing common shares is considered a noncash investing and financing activity. These types of transactions are not reported in the body of the cash flow statement but are instead disclosed in the notes to the financial statements or in a separate schedule.

The Acquisition of Land by Issuing Common Shares Is