The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Schedule of noncash investing or financing activity.
E)None of these.This is not reported on the statement of cash flows.

Question

Quizplus · Accepted Answer

Issuance of common stock for cash is a financing activity as it involves raising capital from investors or shareholders, which is classified under financing activities on the statement of cash flows.

The Appropriate Section in the Statement of Cash Flows for Reporting