Raising new capital through the sale of common equity is an example of which cash-related activity in the cash flow cycle?

Question

Quizplus · Accepted Answer

The sale of common equity is a financing activity, as it involves raising funds from external sources to support the company's operations, growth, or other capital needs. Financing activities involve transactions that affect the company's capital structure and include borrowing money, issuing debt or equity securities, repurchasing shares, paying dividends, or any other activities that involve the inflow or outflow of capital from the company's owners or creditors. This activity is not directly related to the company's operating or investing activities, which focus on generating revenue and managing assets or liabilities, respectively.

Raising New Capital Through the Sale of Common Equity Is