When using the direct method,how is the issuance of stock for cash shown on the statement of cash flows?
A)As an operating activity
B)As an investing activity
C)As a financing activity
D)As a noncash investing and financing activity

Question

Quizplus · Accepted Answer

Issuance of stock for cash is an activity related to financing, therefore it will be shown as a financing activity on the statement of cash flows when using the direct method.

When Using the Direct Method,how Is the Issuance of Stock