Economics · Accountancy
A company has issued shares valued at $150,000 directly in exchange for shares in a subsidiary company. Which of the following options describes the correct treatment in the statement of cash flows?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A $150,000 cash inflow should be included in investing activities.
- 2A $150,000 cash inflow should be included in financing activities.
- 3A $150,000 cash inflow should be included in operating activities.
- 4No entries should be made in the statement of cash flows as it is a non-cash transaction.✓
Correct answer
No entries should be made in the statement of cash flows as it is a non-cash transaction.
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