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    Question

    A company purchased land for ₹5,00,000 by issuing

    shares instead of paying cash. How should this transaction be treated in the cash flow statement?
    A Shown as a cash inflow in financing activities Correct Answer Incorrect Answer
    B Not reported anywhere in the financial statements Correct Answer Incorrect Answer
    C Disclosed as a non-cash transaction in the notes to accounts Correct Answer Incorrect Answer
    D Shown as a cash outflow in investing activities Correct Answer Incorrect Answer

    Solution

    The correct answer is C

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