Issuing Stock in Exchange for Cash Creates an Increase in Cash

question 49

True/False

Issuing stock in exchange for cash creates an increase in cash from a financing activity.

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Definitions:

Tax Imposed

A financial charge or other levy placed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund various public expenditures.

Tax Burden

The total amount of tax paid by individuals or corporations, often expressed as a percentage of income or GDP.

Buyers

Individuals or entities that purchase goods or services from a seller in exchange for money.

Per Unit

A measure expressing the cost, price, or quantity with respect to a single unit of goods or services.