CFA Practice Question
Gemini Corporation acquires a manufacturing plant from firm Aquarius Inc. In return for the plant, Gemini issues shares to Aquarius. Which of the following is most likely correct a correct impact of the transaction?
A. CFI will be higher
B. CFF will be higher
C. No impact on CFO and CFI
Explanation: Non cash transactions do not affect items in the cash flow statement. Instead they will be disclosed in a note or supplementary schedule.
User Contributed Comments 1
| User | Comment |
|---|---|
| harrybay | That's a good one |