An increase in common stock would be an investing activity under the statement of cash flows.

Question

Quizplus · Accepted Answer

An increase in common stock would be a financing activity under the statement of cash flows, not an investing activity. Investing activities involve the acquisition or disposal of long-term assets, such as property, plant, and equipment or investments in securities. Financing activities involve obtaining or repaying funds from creditors and owners, such as issuing or repurchasing common stock, paying dividends, or borrowing money.

An Increase in Common Stock Would Be an Investing Activity