Introduction to the Statement of Cash Flows Video Lessons

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Problem: A company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common stock (no market price was quoted). How should this be reported in connection with the statement of cash flows? A. Report $12,000 as inflow and outflow of cash. B. Report $12,000 as an inflow of cash. C. Do not report it as it is not a cash transaction. D. Report in the schedule of significant noncash transactions.

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A company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common stock (no market price was quoted). How should this be reported in connection with the statement of cash flows?

A. Report $12,000 as inflow and outflow of cash.

B. Report $12,000 as an inflow of cash.

C. Do not report it as it is not a cash transaction.

D. Report in the schedule of significant noncash transactions.

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