Question

Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock issue would appear in the ____ section of the statement of cash flows.

a.operating
b.business
c.equity
d.investing
e.financing

Answer 1

Answer:

e.financing

Explanation:

The cash flow statement contains a section titled cash flow from financing activities. The section shows cash inflows and outflow relating to debts insurance and financing,  new stocks, and dividend payments.  

The cash flow from financing activities section shows the net inflow resulting from activities that fund the business. Financing activities include debts and equity financing. Debt is borrowed capital such as bonds and loans, while equity involves issuance of new stocks or shares.