Transnational Company plans to purchase a property to build its corporate headquarters.An investor is willing to exchange land worth $500,000 for common stock.This transaction would be shown in the financing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

This transaction would not be shown in the financing activities section of the statement of cash flows. It would most likely be shown in the investing activities section as it involves the exchange of an asset (land) for another asset (common stock).

Transnational Company Plans to Purchase a Property to Build Its