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Utchas Chowdhury
on Nov 14, 2024

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Issue of common shares in exchange for equipment:

A) operating activities section
B) investing activities section
C) financing activities section
D) does not represent a cash flow

Common Shares

Shares of ownership in a corporation that grant holders voting rights and a residual claim on the corporation's assets and earnings.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing debt, selling stock, or paying dividends.

Issue of Shares

Refers to the process by which a corporation issues new shares of stock to raise capital, often to expand or to undertake new projects.

  • Separate the financial activities into cash flows from operations, investments, and financing, noting the differences.
  • Acquire an understanding of how to recognize and report noncash activities in financing and investing.
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