Issuing preferred stock to stockholders would be a:

Question

Quizplus · Accepted Answer

Issuing preferred stock to stockholders would result in a cash inflow from financing activities since it involves raising capital by selling a security to investors. Choice A is incorrect because investing activities involve transactions involving long-term assets such as purchase and sale of property, plant, and equipment or investments in securities. Choice B is incorrect because operations involve transactions related to the main business of the company such as sales, expenses, and income. Choice D is incorrect because depreciation does not result in a cash inflow but is a non-cash expense that is recorded on the income statement.

Issuing Preferred Stock to Stockholders Would Be A