The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:
A) Schedule of noncash investing or financing activity.
B) Operating activities.
C) This is not reported on the statement of cash flows.
D) Financing activities.
E) Investing activities.

Question

Quizplus · Accepted Answer

Issuance of common stock for cash is a financing activity and is reported in the financing activities section of the statement of cash flows. This section details all of the company's activities that deal with raising capital, paying dividends, and repurchasing its own stock.

The Appropriate Section in the Statement of Cash Flows for Reporting