The issue of Common Stock for cash will be shown as a:
A)negative cash flow in the investing section of the statement of cash flows.
B)positive cash flow in the investing section of the statement of cash flows.
C)negative cash flow in the financing section of the statement of cash flows.
D)positive cash flow in the financing section of the statement of cash flows.

Question

Quizplus · Accepted Answer

Issuing common stock for cash is a financing activity because it involves raising capital from investors to fund the company's operations. Therefore, it would result in a positive cash flow in the financing section of the statement of cash flows.

The Issue of Common Stock for Cash Will Be Shown