Which of the following transactions would not be reported in the one of the three main activity sections of the statement of cash flows prepared under the indirect method?
A)A purchase of treasury stock
B)A purchase of an operational asset by issuing common stock
C)A loan made to another company
D)Patent amortization
E)A gain on the sale of a plant asset

Question

Quizplus · Accepted Answer

A purchase of an operational asset by issuing common stock is a non-cash transaction and is not reported in the main sections of the cash flow statement. Instead, it is disclosed in the notes or a separate schedule.

Which of the Following Transactions Would Not Be Reported in the One