Issuing common stock in exchange for land will create a cash outflow in the investing activities section of the cash flow statement.

Question

Quizplus · Accepted Answer

Issuing common stock in exchange for land would not create a cash outflow in the investing activities section of the cash flow statement. It would only affect the financing activities section if the stock was sold to investors, or the operating activities section if the land was used in the company's operations.

Issuing Common Stock in Exchange for Land Will Create a Cash