The Sale of Common Stock Is Shown on the Statement

question 57

Multiple Choice

The sale of common stock is shown on the statement of cash flows as:

• A) financing activities.
• B) operating activities.
• C) investing activities.
• D) none of the above. They are not shown on the statement of cash flows.

---

Definitions:

Accounting Irregularities

Deviations from standard accounting practices, often indicating error or fraud, which can lead to misstated financial reports.

Companies' Filings

Documents and reports that businesses are required to submit to regulatory authorities, containing financial and other important information about the company.

Bill and Hold

A sales arrangement where goods are invoiced and recognized as sold, but delivery is delayed at the buyer's request.

Substantial Business Purpose

A legitimate business reason for conducting a transaction or establishing a business structure beyond mere tax benefits.