Assume that the E-Zip Corporation uses the indirect method to depict cash flows. Indicate where, if at all, common stock issued for cash would be classified.
A) Operating activities section.
B) Investing activities section.
C) Financing activities section.
D) Does not represent a cash flow.

Question

Quizplus · Accepted Answer

Issuing common stock for cash is classified under the financing activities section as it involves raising capital through equity.

Assume That the E-Zip Corporation Uses the Indirect Method to Depict