When using the indirect method, how is the issuing of stock for cash shown on the statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Non cash investing and financing activity

Question

Quizplus · Accepted Answer

Issuing of stock for cash represents a financing activity, as it involves raising capital from investors. Therefore, it will be shown in the financing section of the statement of cash flows.

When Using the Indirect Method, How Is the Issuing of Stock