Asked by Kaylee Greydanus on May 26, 2024
Verified
The acquisition of land in exchange for common stock is an example of a noncash investing and financing activity.
Noncash Investing
Investment activities that do not involve cash transactions, often including the acquisition of physical assets, securities, or other investments through non-cash exchanges.
- Understand the treatment of noncash investing and financing activities in the statement of cash flows.
Verified Answer
AM
Alissa Mullins-DiazMay 28, 2024
Final Answer :
True
Explanation :
The acquisition of land in exchange for common stock does not involve the exchange of cash, so it is considered a noncash investing and financing activity.
Learning Objectives
- Understand the treatment of noncash investing and financing activities in the statement of cash flows.
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