Where are shares of the reporting company's common stock issued in exchange for cash reported on a statement of cash flows?
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Stockholder activities.

Question

Quizplus · Accepted Answer

Issuance of shares in exchange for cash represents the inflow of cash to the company and is classified as a financing activity under the direct method or indirect method of preparing the statement of cash flows.

Where Are Shares of the Reporting Company's Common Stock Issued