When using the indirect method, how is the issuance of stock to retire a long-term debt shown on a statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Noncash investing or financing activity

Question

Quizplus · Accepted Answer

Issuance of stock to retire a long-term debt is considered a noncash transaction and is therefore reported in a separate section for noncash investing and financing activities on the statement of cash flows.

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