Shield Company just started in business, and it was looking for additional capital in order to purchase a property to build their headquarters. They found an investor who was willing to sell them land worth $700,000 in exchange for stock in the company. How would this transaction be shown on the statement of cash flows?
A)in the investing activities section
B)in the non-cash investing and financing activities section
C)in the operating activities section
D)in the financing activities section

Question

Quizplus · Accepted Answer

Since the transaction involves the exchange of non-cash assets (land and stock), it should be reported in the non-cash investing and financing activities section of the statement of cash flows.

Shield Company Just Started in Business, and It Was Looking