Asked by FarahDika Glamours on Jul 09, 2024
Verified
Issuing capital stock for cash represents an investing activity.
Capital Stock
The total amount of common and preferred shares that a company is authorized to issue, representing the equity ownership of the company.
- Comprehend the segments of activities specified in the cash flow statement (operating, investing, and financing) and the varieties of transactions contained in each segment.
Verified Answer
SB
Sarah BoldenJul 16, 2024
Final Answer :
False
Explanation :
Issuing capital stock for cash is considered a financing activity, as it involves obtaining funds to finance the company's operations or growth by issuing shares of the company's equity.
Learning Objectives
- Comprehend the segments of activities specified in the cash flow statement (operating, investing, and financing) and the varieties of transactions contained in each segment.