Cash received from the issue of shares will appear in which section of the statement of cash flows?
A)Investing activities section.
B)Does not appear in the statement.
C)Operating activities section.
D)Financing activities section.

Question

Quizplus · Accepted Answer

Cash received from the issue of shares represents a form of raising capital and is therefore classified as a financing activity in the statement of cash flows. The financing activities section relates to cash inflows and outflows from the issuance and repayment of long-term liabilities and equity, including borrowings, dividends paid, and share issuances.

Cash Received from the Issue of Shares Will Appear in Which