Issuance of stock results in cash inflows that appear in the Financing section of the statement of cash flows.

Name: Issuance of stock results in cash inflows that appear in the Financing section of the statement of cash flows.
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Question

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When a company issues stock, it receives cash from the new shareholders. This is considered a financing activity, as it raises capital for the company. Therefore, the cash inflows from the issuance of stock will appear in the Financing section of the statement of cash flows.

Issuance of Stock Results in Cash Inflows That Appear in the Financing