Question

Indicate where the event common stock issued for cash would appear, if at all, on the indirect statement of cash flows. Group of answer choices Operating activities section Investing activities section Financing activities section Does not represent a cash flow

Answer 1

Answer: Financing activities section

Explanation:

The Financing Activities are refered to as the transactions which affect the long-term liabilities and equity of the company.

In the case if the question given, the common stock that's issued for cash would appear in the financing activities section due to the fact that the activity is related to finance and affects the company.