Issuing common stock in exchange for a building will create a cash inflow in the financing activities section of the cash flow statement.

Question

Quizplus · Accepted Answer

Issuing common stock in exchange for a building does not involve any actual cash transactions, as no money is being received or paid. Therefore, it will not create a cash inflow in the financing activities section of the cash flow statement. Instead, it will be recorded as a non-cash transaction in the investing activities section of the statement.

Issuing Common Stock in Exchange for a Building Will Create