The issuance of common stock for cash is shown as a ________.
A) negative cash flow in the investing activities section of the statement of cash flows
B) positive cash flow in the investing activities section of the statement of cash flows
C) negative cash flow in the financing activities section of the statement of cash flows
D) positive cash flow in the financing activities section of the statement of cash flows

Question

Quizplus · Accepted Answer

The issuance of common stock for cash represents a positive cash inflow from financing activities, as the company is receiving cash from investors in exchange for equity ownership. Therefore, it should be presented as a positive cash flow in the financing activities section of the statement of cash flows.

The Issuance of Common Stock for Cash Is Shown as a ________