How would the issuance of Common Stock affect the statement of cash flows financing section-indirect method?
A) It would affect the financing section positively.
B) It would affect the financing section negatively.
C) It would increase the investing section of the statement of cash flows.
D) Does not affect the cash flow from financing.

Question

Quizplus · Accepted Answer

Issuing common stock results in the company receiving cash from investors, which is recorded as an inflow of cash in the financing section of the statement of cash flows, thus affecting it positively.

How Would the Issuance of Common Stock Affect the Statement