Issuing preferred stock to stockholders would be a
A)cash inflow from investing.
B)cash inflow from operations.
C)cash inflow from depreciation.
D)cash inflow from financing.

Question

Quizplus · Accepted Answer

Issuing preferred stock to stockholders is a way of raising funds from investors, which falls under the category of financing activities. Therefore, it represents a cash inflow from financing.

Issuing Preferred Stock to Stockholders Would Be a