Issuing preferred stock to stockholders in exchange for cash is shown under the financing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

Issuing preferred stock to stockholders in exchange for cash is a financing activity, as it involves raising funds for the company through the issuance of securities. As such, it is shown under the financing activities section of the statement of cash flows.

Issuing Preferred Stock to Stockholders in Exchange for Cash Is