CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

In a statement of cash flows, the acquisition of land by issuing capital stock is ______
A. not shown at all, since no cash was received or disbursed.
B. shown as an investing/financing activity.
C. shown in a supplementary schedule as a noncash investing and financing transaction.

User Contributed Comments 7

User Comment
treakj Has to see what is the treatment for non cash operations.
pochuevalex As far as I get it from the LOS aqcuisition of land by issuing capital stock can be found in the footnotes to financial reports rather than in original statement of cash flow.
I prefer asnwer A
mishis Footnotes are part of the fin statements pochuevalex
viruss I picked answer A also as a former auditor but OK, C is a correct statement.
houstcarr I thought this meant issuing shares for cash, then using the cash to purchase land. Chose B....
sahil1994 could anyone help with why A is not the correct answer.
choas69 it was not shown at all in the statement of cashflows because non cash activity but such non cash-investments using stocks is mentioned in the supplementary schedule.
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