How Would a New Issue of Common Stock Be Shown

question 55

Multiple Choice

How would a new issue of common stock be shown on the statement of cash flows?

• A) Negative cash flow in the investing section
• B) Positive cash flow in the investing section
• C) Negative cash flow in the financing section
• D) Positive cash flow in the financing section

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Definitions:

Crystalline Rocks

Rocks composed of crystals that are tightly interlocked, typically formed through the cooling and solidification of magma or by metamorphism.

Continental Shield

A large geological area composed of Precambrian crystalline rocks that are often millions of years old, making up the stable parts of continents.

Sediment-Filled Basin

A low area on the Earth's surface where sediments have accumulated over time, often due to the sinking or subsidence of the crust.

Continental Hot Spot

A volcanic region thought to be fed by underlying mantle that is anomalously hot compared with the surrounding mantle, situated in the interior of a continental plate.