Question:
Which of the following items is not considered an investing cash flow in the statement of cash flows?
a. Purchase of equipment.
b. Purchase of securities.
c. Issuing common stock for cash.
d. Sale of land.
Beginning in 2011, International Financial Reporting Standards are tested on the CPA exam along with
U.S. sGAAP. The following questions deal with the application of IFRS.
Answer:
c. Issuing common stock for cash is considered a financing cash flow, not an investing cash flow.
Which of the following items is not considered an investing cash flow in the statement of cash flows?
a. Purchase of equipment.
b. Purchase of securities.
c. Issuing common stock for cash.
d. Sale of land.
Beginning in 2011, International Financial Reporting Standards are tested on the CPA exam along with
U.S. sGAAP. The following questions deal with the application of IFRS.
Answer:
c. Issuing common stock for cash is considered a financing cash flow, not an investing cash flow.
