How would a new issue of common stock be shown on the statement of cash flows?
A) Negative cash flow in the investing section
B) Positive cash flow in the investing section
C) Negative cash flow in the financing section
D) Positive cash flow in the financing section

Question

Quizplus · Accepted Answer

Issuing new common stock results in the company receiving cash from investors, which is recorded as a positive cash flow in the financing section of the statement of cash flows.

How Would a New Issue of Common Stock Be Shown