Is issuing common stock a financing activity?
Understand the Problem
The question is asking whether the act of issuing common stock is classified as a financing activity in accounting or financial reporting. This involves understanding the classifications of cash flows in financial statements.
Answer
Yes, issuing common stock is a financing activity.
The final answer is yes, issuing common stock is a financing activity.
Answer for screen readers
The final answer is yes, issuing common stock is a financing activity.
More Information
Issuing common stock is a financing activity because it involves raising capital by selling ownership shares of the company.
Sources
- Why is issuance of common stock a financing activity? - Study.com - homework.study.com
- Cash Flow Statement: Analyzing Cash Flow From Financing Activities - Investopedia - investopedia.com
- Cash Flows From Financing | Financial Accounting - courses.lumenlearning.com
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