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is it correct In the Statement of Cash Flows, an increase in Common.pdf

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shankaranilahuja

An increase in common stock is recorded as a cash flow from financing activities on the Statement of Cash Flows. The document confirms that an increase in common stock would be considered a financing activity rather than an operating or investing activity. It also states that changes in common stock are recorded on the Statement of Cash Flows.

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is it correct? In the Statement of Cash Flows, an increase in Common stock would be recorded as: A cash flow from operating activities. A cash flow from investing activities. A cash flow from financing activities. This item is not a cash flow. This item would not be recorded on the statement of cash flows. Solution Yes, increase in common stock is a cash flow from financing activity and decrease in common stock is also a financing activity.

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