Indicate Where the Issuance of Common Stock Issued for Cash

question 208

Multiple Choice

Indicate where the issuance of common stock issued for cash would appear if at all on the indirect statement of cash flows.

• A) Operating activities section
• B) Investing activities section
• C) Financing activities section
• D) Does not represent a cash flow

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Definitions:

Future Cash Flows

Estimates of money expected to be received and paid out over future periods by a business.

Borrowing Terms

Conditions and agreements under which a loan is made, including interest rate, repayment schedule, and collateral requirements.

Dividends

A portion of a company's earnings distributed to its shareholders, often expressed as a fixed amount per share.

IFRS

International Financial Reporting Standards, a set of global accounting standards that guide the financial reporting of public companies.