Issuance of common stock for cash would result in:
A)an increase of cash flow from operating activities.
B)a decrease of cash flow from investing activities.
C)an increase of cash flow from financing activities.
D)an increase of cash flow from investing activities.

Question

Quizplus · Accepted Answer

Issuance of common stock for cash is a financing activity as it involves raising capital from external sources, which increases cash flow from financing activities. It does not affect cash flow from operating activities, as it does not involve any revenue or expenses generated from the company's core business operations. It also does not involve the purchase or sale of any long-term assets, so it does not affect cash flow from investing activities.

Issuance of Common Stock for Cash Would Result In