Issuance of stock results in cash inflows that appear in the financing section of the statement of cash flows.

Name: Issuance of stock results in cash inflows that appear in the financing section of the statement of cash flows.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a company issues new stock, it receives cash from investors in exchange for ownership in the company. This cash inflow is classified as a financing activity and would appear in the financing section of the statement of cash flows.

Issuance of Stock Results in Cash Inflows That Appear in the Financing