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Common stock and additional-paid in capital represent the financing sources from shareholders.

Common stock and additional-paid in capital represent the financing sources from shareholders.

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Answer #1

Common stock are the ordinary shares, the person who purchase it becomes the shareholders of the company.

They are the last claimants in profits, profit are distributed to them after necessary payment are made like interest, tax, preference dividend etc

There is a cash inflows at the time of issue and cash outflow at the time of redemption or buyback of stock

They are shown in cash flow under cash flow from financing activities

Please rate it at the end thank you so much

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