Asked by Amber Koeuth on Jul 16, 2024

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Activities relating to raising money from investors and creditors such as the issuance of common stock are classified as:

A) Financing activities.
B) Investing activities.
C) Operating activities.
D) Management activities.

Issuance

The process of distributing or releasing something official, such as a document, stock, or currency.

Common Stock

Part of paid-in capital representing the basic ownership equity of the corporation. If the corporation has only one class of stock, it will be common stock.

Investors

Individuals or entities that allocate capital to various types of investments with the expectation of obtaining a future financial return.

  • Distinguish and group activities concerning cash flow into operating, investing, and financing types.
  • Comprehend the role of financing activities and their influence on liquidity.
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FA
Francisco AmadoJul 16, 2024
Final Answer :
A
Explanation :
Financing activities involve transactions between a company and its investors and creditors that affect the equity and debt of the business. Issuance of common stock is a way to raise equity capital, thus it falls under financing activities.