Which of the following statements about shares issued in exchange for assets is true?
A) They impact cash ﬂows.
B) They are disclosed in a note to the statement of cash ﬂows.
C) They are classiﬁed as operating activities.
D) They are classiﬁed as investment activities.

Question

Quizplus · Accepted Answer

When shares are issued in exchange for assets, it does not directly impact cash flows since the transaction does not involve cash. However, such transactions are significant non-cash activities that are disclosed in a note to the statement of cash flows to provide a complete picture of the company's financing activities.

Which of the Following Statements About Shares Issued in Exchange