The issuance of shares for cash would be classified as a(n):

Question

Quizplus · Accepted Answer

Issuance of shares for cash is a financing activity, as it involves bringing in capital from external sources by issuing shares to investors. The cash received from the issuance of shares is used to finance the operations of the business, such as investing in new projects or paying off debts. This activity is reported under the financing section of the cash flow statement as it affects the long-term financing of the business, rather than the day-to-day operational activities.

The Issuance of Shares for Cash Would Be Classified as A(n)