Question
If common stock was issued to acquire an $8,000 machine, how would the transaction appear on the statement of cash flows? It would not appear
If common stock was issued to acquire an $8,000 machine, how would the transaction appear on the statement of cash flows?
It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities.
It would be a positive $8,000 in the financing section and a negative $8,000 in the investing section.
It would depend on whether you are using the direct or the indirect method.
It would be a negative $8,000 in the financing section and a positive $8,000 in the investing section.
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Management And Cost Accounting
Authors: Colin Drury
6th Edition
1844807037, 978-1844807031
