Questions
Business Finance Exam 1 Practice
Single choice
3.7: If a company issues $100,000 in new stock, how is this reflected in the cash flow statement?
Options
A.Cash outflow in operating activities
B.Cash inflow in financing activities
C.Cash outflow in investing activities
D.Cash adjustment in taxes
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Verified Answer
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Step-by-Step Analysis
To understand where the transaction fits on the cash flow statement, we need to consider the nature of issuing new stock.
Option 1: 'Cash outflow in operating activities' would apply to cash transactions related to core business operations, such as cash paid to suppliers or cash co......Login to view full explanationLog in for full answers
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Similar Questions
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