The issuance of common stock in exchange for a building would appear both as a cash inflow in the financing activities section of the cash flow statement and also as a cash outflow in the investing activities section.

Question

Quizplus · Accepted Answer

The issuance of common stock in exchange for a building would not involve cash inflow or outflow, and therefore would not appear on the cash flow statement. It would be reflected in the balance sheet as an increase in the asset (building) and an increase in the equity (common stock) accounts.

The Issuance of Common Stock in Exchange for a Building