5-14 A company acquired a fixed asset in exchange for common stock. Explain how this transaction...

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5-14 A company acquired a fixed asset in exchange for common stock. Explain how this transaction should be shown, if at all,

business accounting

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Answer 1

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Statement of cash flow shows inflow and outflow of cash and calculates ending cash balance. The Acquisition of Fixed asset in exchange for common stock is not a cash transaction and hence this transaction will not be shown in the statement of cash flow.

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