Question

Preferred stock issued in exchange for land would be reported in the statement of cash flows in Group of answer choices the cash flows from financing activities section the cash flows from investing activities section a separate schedule the cash flows from operating activities section

Answer 1

Answer: a separate schedule

Explanation:

Preferred stock, are referred to as the shares of the stock of a company whereby the dividends are paid out to the preference shareholders before the common stock dividends are issued.

It should be noted that the preferred stock which is issued in exchange for the land will be reported in the statement of cash flows in a separate schedule.