Which of the following transactions would create an increase in cash from a financing activity?
A)Issuing shares of common stock to stockholders in exchange for cash.
B)Selling a short-term stock investment in exchange for cash.
C)Selling used equipment,which was a part of property and equipment,for cash.
D)The payment of an account payable.

Question

Quizplus · Accepted Answer

Issuing shares of common stock to stockholders in exchange for cash generates cash inflow from financing activities, as the company receives funds from external sources (stockholders) in exchange for ownership in the company.

Which of the Following Transactions Would Create an Increase in Cash