Kingston Company settled a long-term note payable it owed to Creative Company by issuing capital stock.Kingston would report this
A)only as a cash outflow from financing activity for the payment of the debt.
B)only as a cash inflow from financing activity for the issuance of the capital stock.
C)in the schedule of noncash investing and financing transactions.
D)as both a cash flow from investing activity and a cash flow from financing activity.

Question

Quizplus · Accepted Answer

This transaction involves settling a debt by issuing stock, which does not involve cash movement. Therefore, it is reported in the schedule of noncash investing and financing transactions.

Kingston Company Settled a Long-Term Note Payable It Owed to Creative