Asked by Zainab Issah on Jul 12, 2024
Verified
When shares of the reporting company's common stock are issued in exchange for cash,where is this reported on a statement of cash flows?
A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Stockholder activities.
Common Stock
Type of equity security that represents ownership in a corporation, with voting rights and the potential for dividends.
- Gain insight into the statement of cash flows and its classification types.
Verified Answer
JP
john patrick floresJul 18, 2024
Final Answer :
B
Explanation :
When shares of common stock are issued in exchange for cash, it is considered a financing activity and would be reported under the financing section of the statement of cash flows.
Learning Objectives
- Gain insight into the statement of cash flows and its classification types.
Related questions
The Cash Payment for Interest on a Bond Payable Is ...
In a Statement of Cash Flows, Issuing Bonds Payable Affects ...
Cash Payments to Repay the Principal Amount of Debt Are ...
Money Received from Issuing Bonds Payable Would Be Included as ...
Collecting the Principal on a Loan to Another Company Would ...