Where would the issuance of stock for cash be reported?
A)On both the income statement and the statement of cash flows
B)On both the statement of cash flows and the statement of stockholders' equity
C)On the statement of cash flows but not the statement of stockholders' equity
D)On neither the income statement nor the statement of cash flows

Question

Quizplus · Accepted Answer

The issuance of stock for cash would be reported in the statement of stockholders' equity as an increase in common stock and in the statement of cash flows under the financing activities section as a cash inflow from issuance of stock. It would not be reported on the income statement as it is not a revenue or expense item.

Where Would the Issuance of Stock for Cash Be Reported