The issuance of stock is reported as a financing activity.

Name: The issuance of stock is reported as a financing activity.
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Question

Quizplus · Accepted Answer

The issuance of stock is a way for a company to raise capital, which is considered a financing activity. Therefore, it is reported as such in the company's statement of cash flows, which categorizes and reports the company's cash inflows and outflows based on their underlying nature.

The Issuance of Stock Is Reported as a Financing Activity