On the statement of cash flows, the issuance of capital stock for cash to be used for future expansion of a production facility is treated as an investing activity.

Question

Quizplus · Accepted Answer

The issuance of capital stock for cash is considered a financing activity on the statement of cash flows, not an investing activity. Investing activities involve the acquisition and disposal of long-term assets and investments.

On the Statement of Cash Flows, the Issuance of Capital