Question

The issuance of stock results in a cash inflow that appears in the financing section of...

The issuance of stock results in a cash inflow that appears in the financing section of the statement of cash flows.

True or False

Homework Answers

Answer #1

Answer:- The issuance of stock results in a cash inflow that appears in the financing section of the statement of cash flows, it is a true statement.

Explanation:- Financing activities include cash activities related to noncurrent liabilities and owners’ equity. Noncurrent liabilities and owners’ equity items include (1) the principal amount of long-term debt, (2) stock sales and repurchases, and (3) dividend payments. (Note that interest paid on long-term debt is included in operating activities.)

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