On the statement of cash flows, the cash flows from financing activities section would include
A) receipts from the sale of investments
B) payments for the acquisition of investments
C) receipts from a note receivable
D) receipts from the issuance of common stock

Question

Quizplus · Accepted Answer

The cash flows from financing activities section of the statement of cash flows includes transactions that involve the company's owners or creditors. Receipts from the issuance of common stock represent a source of financing for the company, as it is raising funds by selling ownership shares to investors. Receipts from the sale of investments and payments for the acquisition of investments would be reported in the cash flows from investing activities section, as they relate to the purchase and sale of long-term assets. Receipts from a note receivable would be reported in the cash flows from operating activities section, as it relates to a transaction that results from the company's normal business operations.

On the Statement of Cash Flows, the Cash Flows from Financing