In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from
A) lending activities.
B) operating activities.
C) investing activities.
D) financing activities.

Question

Quizplus · Accepted Answer

Proceeds from issuing equity instruments represent an inflow of cash to the entity and involve the issuance of ownership interests, which are part of financing activities.

In a Statement of Cash Flows, Proceeds from Issuing Equity