If 800 shares of $40 par common stock are sold for $43,000, the $43,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

The sale of common stock is considered a financing activity, therefore the $43,000 received from selling 800 shares of $40 par common stock would be reported in the cash flows from financing activities section of the statement of cash flows.

If 800 Shares of $40 Par Common Stock Are Sold