Proceeds from the Issuance of Shares Appear in Which, If

question 8

Multiple Choice

Proceeds from the issuance of shares appear in which, if any, section of the cash flow statement?

• A) investing activities section
• B) financing activities section
• C) operating activities section
• D) Proceeds from the issuance of shares do not appear in the cash flow statement.

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Definitions:

Financial Position

The status of a company or individual's assets, liabilities, and equity at a specific point in time, summarizing the economic resources and obligations.

EBIT

Earnings Before Interest and Taxes - a measure of a firm's profitability that excludes interest and income tax expenses.

Accounts Payable

Accounts Payable is the amount of money a company owes its suppliers for goods or services received but not yet paid for.

Basic Earning Power Ratio

A financial ratio that shows how effectively assets are being used to generate earnings before the influence of taxes and financing costs.