When Using the Indirect Method, How Is the Issuing of Stock

question 179

Multiple Choice

When using the indirect method, how is the issuing of stock for cash shown on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Non cash investing and financing activity

---

Definitions:

Transferee

A person or organization that acquires property, rights, or interests from someone else via a lawful transfer method.

Transferor

The party that transfers rights, property, or interests to another, known as the transferee.

Qualified Endorsement

A clause on a negotiable instrument which limits the liability of the endorser or specifies a particular payee.

Without Recourse

A financial agreement where the seller is not liable to the purchaser for any failure of the assets or obligations sold.