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A company issues common stock to settle a debt, this would be classified as a(n): Ooperating activity. O investing activity. O noncash investing and financing activity. financing activity

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Answer #1

Company normally issue any common stock than there is cash inflow and shown in financing activity

Settle a debt through issue of common stock it means in reality there is no cash inflow and outflow in company.

So if there is no cash transaction than it will not affect the cash flow statement and treated as non cash activity.

Answer= Option 3 = Noncash investing and financing activity.

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