Cash investments made by stockholders in exchange for capital stock in a business are reported on the statement of cash flows in the

Question

Quizplus · Accepted Answer

Cash investments made by stockholders are considered financing activities, as they involve obtaining funds from external sources to finance the business. The financing activities section of the statement of cash flows reports on the issuance of capital stock, payment of dividends, borrowings, and repayments of loans.

Cash Investments Made by Stockholders in Exchange for Capital Stock