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)As an operating activity
B)As an investing activity
C)As a financing activity
D)As a noncash investing or financing activity

Question

Quizplus · Accepted Answer

The issuance of stock to retire a long-term debt is shown as a noncash investing or financing activity on a statement of cash flows because it involves exchanging one form of financing (equity) for another (debt) without using cash.

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