A company issues common stock for $100,000.On a statement of cash flows,this will be reported as a(n):
A)financing cash flow.
B)investing cash flow.
C)operating cash flow.
D)noncash activity.

Question

Quizplus · Accepted Answer

Issuing common stock represents a form of financing for a company, as it raises capital from external sources. Therefore, this transaction would be reported as a financing cash flow on the statement of cash flows.

A Company Issues Common Stock for $100,000