When a company issues shares,it reports a cash inflow from financing activities; when it repurchases shares,it reports a cash outflow for financing activities.
BT: Comprehension

Question

Quizplus · Accepted Answer

This statement is true as issuing shares results in a cash inflow for the company, whereas repurchasing shares results in a cash outflow. Both of these activities are classified as financing activities on the statement of cash flows.

When a Company Issues Shares,it Reports a Cash Inflow from Financing