The acquisition of land by issuing common stock is a cash transaction and would be reported in the body of a statement of cash flows

Accounting Jan 16, 2021

The acquisition of land by issuing common stock is a cash transaction and would be reported in the body of a statement of cash flows. a noncash transaction and would be reported in the body of a statement of cash flows. a noncash transaction that is not reported in the body of a statement of cash flows. only reported if the statement of cash flows is prepared using the direct method.

Expert Solution

Only cash transactions are reported in cash flow statement. Acquisition of land by issuing common stock is a non-cash transaction. Hence, it should not be reported in cash flow statement. Therefore,Option C is correct answer.

Remaining options are incorrect.

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