e.neowebapps/assessment/take/launch.jsp?course assessment id 21992 18 QUESTION 3

Question

e.neowebapps/assessment/take/launch.jsp?course assessment id 21992 18 QUESTION 3 Which cash flow activity is related to issuing stock to investors? operating activities B. investing activities O C.financing activities 0 D. investing and financing activities QUESTION 4 Which of the following transactions would be considered an investing activity on a Statemer OA. Purchased equipment for $5,000 cash. O B. Sold stock for $100,000 cash to stockholders. ° C. Paid $20,000 income tax. O D. Paid $45,000 for inventory for resale. QUESTION 5 Most companies list assets on the balance sheet in order of the size of the dollar amount of each True False QUESTION 6

Explanation / Answer

Issuing of Stock to investor for cash is covered under “Cash Flows from financing activities” . This is presented as a addition to cash flows from financing activities in cash flow statements.

Hence correct answer is :

C. Financing activities.

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