When the indirect method is used to determine operating cash flows, how should the issuance of...

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When the indirect method is used to determine operating cash flows, how should the issuance of shares for cash be classified

business accounting

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Answer 1

Answer #1

The correct answer is

As an financing activity

Explanation

Issuance of shares for cash is cash Inflow from financing activities and should be shown under financing activities under the cash flow statement.

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Answer 2

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