The issuance of common stock for cash would appear on the
A)income statement and statement of cash flows
B)statement of cash flows and statement of stockholders' equity
C)income statement,balance sheet and statement of stockholders' equity
D)income statement,statement of cash flows and statement of stockholders' equity

Question

Quizplus · Accepted Answer

The issuance of common stock for cash would be recorded as a financing activity on the statement of cash flows and would also be reflected in the statement of stockholders' equity which explains the changes in the company's equity accounts. It would not impact the income statement or the balance sheet directly.

The Issuance of Common Stock for Cash Would Appear on the