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 only appear in the Investing Activities section as a noncash transaction. There would be no cash inflow or outflow related to this transaction in the Financing Activities section.

The Issuance of Common Stock in Exchange for a Building