The Appropriate Section in the Statement of Cash Flows for Reporting

question 154

Multiple Choice

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

• A)Operating activities.
• B)Financing activities.
• C)Investing activities.
• D)Schedule of noncash investing or financing activity.
• E)None of these as this is not reported on the statement of cash flows.

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Definitions:

Condensed Structure

A method of writing a structural formula of a molecule that shows the arrangement of atoms without drawing all bonds explicitly.

Conjugate Acid

A species formed by the reception of a proton (H⁺) by a base, in the context of Bronsted-Lowry acid-base theory.

Ethanamine

An organic chemical compound, also known as ethylamine, with the formula CH3CH2NH2, classified as a primary amine.

Conjugate Base

The species that remains after an acid has donated a proton, often able to react by accepting a proton.