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

question 161

Multiple Choice

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

• A)As an operating activity
• B)As an investing activity
• C)As a financing activity
• D)As a Noncash investing and financing activity

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Definitions:

Perfectly Inelastic

Describes a situation in which the quantity demanded or supplied does not change in response to a price change.

Demand Determined

implies that the quantity and price of goods and services are decided by the consumers' demand or preferences in the market.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Elastic

A characteristic of goods or services with demand that is significantly responsive to changes in price.