Issuing shares of stock in exchange for cash is an example of a(n): - delivering...
Question:
Issuing shares of stock in exchange for cash is an example of a(n):
- delivering activity.
- investing activity.
- financing activity.
- operating activity.
Statement of Cash Flows:
One of the financial statements or reports that is prepared at year-end is the statement of cash flows. This shows the company's cash position during the period, which is the cash inflows and cash outflows.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerThe correct answer is financing activity.
Financing activity is a cash transaction that is related to the equity and long-term liabilities of the...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:

from
Chapter 2 / Lesson 4Learn about statements of cash flows. Discover what a cash flow statement is and see the indirect method statement of cash flows, net cash flows, and other examples.
Related to this Question
- Issuing shares of stock in exchange for cash is an example of a(n): a) Operating activity. b) Investing activity. c) Delivering activity. d) Financing activity.
- Paying cash to buy stocks or bonds of another company is an example of: a. a capital activity b. a merchandising activity c. a financing activity d. an operating activity e. an investing activity
- The contribution of equipment by a stockholder in exchange for common stock is an example of: a. financing activity. b. operating activity. c. investing activity. d. non-cash investing and financing activity.
- Issuing debt is an example of a(n) _____ a. operating activity. b. investing activity. c. financing activity. d. noncash investing and financing activity.
- Suppose a business issued $250,000 of ordinary shares in exchange for cash. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activities.
- Buying assets needed to operate a business is an example of a(n): a. delivering activity b. financing activity c. investing activity d. operating activity
- Buying and selling products are examples of: a) Operating activity. b) Investing activity. c) Delivering activity. d) Financing activity.
- A company issued 30,000 shares of capital stock in exchange for $300,000 in cash. Is this classified as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity)? Explain.
- A transaction involving the exchange of stock for land would be classified as a(n): A. Investing activity. B. Noncash investing and financing activity. C. Financing activity. D. Operating activity.
- Transactions that provide cash to the business to carry on its activities are: a. outflows or uses of cash. b. investing activities. c. financing activities. d. operating activities.
- Selling a long-term asset is an example of a(n): a. operating activity. b. investing activity. c. financing activity. d. noncash investing and financing activity.
- Suppose a business borrowed $460,000 from the bank. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activities.
- Which of the following activities is an example of a financing activity? a. Purchase of land by issuing stock b. Payment of cash dividends c. Purchase of land for cash d. Purchase of inventory for cash
- How should the issuance of capital stock be classified in the statement of cash flows? a. operating activity b. investing activity c. financing activity d. significant non-cash investing and financing activity
- The sale of inventory for cash is reported on the statement of cash flows under: a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities
- A company paid cash for stock in another company. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
- The exchange of stock for land would be reported on the statement of cash flows as a(n): a. non-cash investing and financing activity b. investing activity c. financing activity d. operating activity e. exchanges are not reported on the statement of cash
- Classify each transaction as either: operating activity (O), investing activity (I), financing activity (F), or noncash investing and financing activity (NC). Also, indicate whether the transaction
- Eleemosynary Organization acquired land valued at $56,000 for 4,200 shares of its stock. Where on the Statement of Cash flows does this transaction activity appear? a. Operating Activities b. Investing Activities c. Financing Activities d. Disclosures
- Cash flows from acquiring and selling products are classified as: a. operating activities b. investing activities c. financing activities d. distribution activities
- Suppose a business declared and paid a cash dividend of $708,000. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activities, or as a non-cash transaction.
- Would cash received from the sale of capital stock be reported on the statement of cash flows as an operating activity, an investing activity, or a financing activity, or does it not appear at all?
- Provide two examples of activities that would affect a company's (a) Cash inflows from financing activities (b) Cash outflows for financing activities
- On the statement of cash flows, the proceeds from the sale of equipment would be classified as: A) An investing activity. B) An operating activity. C) A financing activity. D) Either an investing, operating, or financing activity.
- Paying interest expense and receiving interest revenue are examples of: a) Operating Activities b) Investing Activities c) Financing Activities d) Delivery Activities
- A transaction involving a gain on the sale of equipment affects cash provided (used) by? a. operating and financing activities. b. operating, financing, and investing activities. c. operating and investing activities. d. financing and investing activit
- Is paying cash for supplies a cash flow from operating activities, investing activities, or financing activities? Explain.
- A company paid an account payable. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
- Suppose a business received $210,000 in cash from accounts receivable. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activities.
- A company received cash for sales. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
- A company purchased treasury stock for cash. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
- Which is an example of a cash flow from an investing activity? (a) Receipt of cash from the issuance of bonds payable. (b) Payment of cash to repurchase outstanding capital stock. (c) Receipt of cash from the sale of equipment. (d) Payment of cash to
- The purchase of treasury stock for cash is analyzed on the statement of cash flows as: a. operating activities b. investing activities c. financing activities d. does not represent cash flow
- An example of a financing activity is: a. the issue of stock for cash. b. the purchase of a building. c. the sale of merchandise for cash. d. the sale of used equipment for cash.
- A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under which section? a. investing activities b. financing activities c. operating activities d. non-cash investing and financing activities
- Selling equipment is reported on the statement of cash flows under: a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities
- An example of a cash outflow from investing activities is: a) making a loan to another company. b) issuance of a note payable. c) paying cash dividends. d) the purchase of treasury stock.
- Which is an example of a cash flow from an operating activity? (a) Payment of cash to lenders for interest. (b) Receipt of cash from the sale of capital stock. (c) Payment of cash dividends to the company's stockholders. (d) None of the above.
- Suppose a business sold an investment costing $10,000 for $10,000 in cash. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activities, or as a non-cash transaction.
- A company paid cash for a new piece of equipment. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
- Is cash paid to acquire machinery classified as an operating activity, an investing activity, or a financing activity?
- Which is an example of a cash flow from an investing activity? a. Receipt of cash from the issuance of bonds payable b. Payment of cash to repurchase outstanding capital stock c. Receipt of cash from the sale of equipment d. Payment of cash to supplie
- Cash flows from issuing and repurchasing stock or issuing and repaying (retiring) debt are classified as: a. operating activities b. investing activities c. financing activities d. borrowing activities
- Define cash activities as operating, investing, or financing and give one example of each.
- The purchase of equipment financed by a long-term note payable is an example of a(n): a. investing activity b. financing activity c. operating activity d. non-cash investing and financing activity
- The payment of a cash dividend would be classified as a(n): a) investing activity. b) operating activity. c) financing activity. d) significant non-cash transactions.
- How should an exchange of land for a patent be classified in the statement of cash flows? a. operating activity b. investing activity c. financing activity d. significant non-cash investing and financing activity
- A company purchased 500 shares of its own stock on the open market for $4,000. How would this transaction be reported on the statement of cash flows? State whether it would be an inflow or outflow from operating activities, investing activities, or financ
- How should the conversion of bonds into common stock be classified in the statement of cash flows? a. operating activity b. investing activity c. financing activity d. significant non-cash investing and financing activity
- Which is an example of a cash flow from an investing activity? a) Payment of cash to repurchase outstanding capital stock b) Receipt of cash from the sale of equipment c) Receipt of cash from the issuance of bonds payable d) Payment of cash to suppliers f
- Suppose a business issued $50,000 of ordinary shares upon conversion of convertible debentures (bonds) with a face value of $50,000. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activiti
- Is selling shares of common stock to new stockholders a cash flow from operating activities, investing activities, or financing activities? Explain.
- A company paid cash dividends of $2,500. How would this transaction be reported on the statement of cash flows? State whether it would be an inflow or outflow from operating activities, investing activities, or financing activities.
- Classify each of the following business activities as an operating, an investing, or a financing activity. a. Acquiring inventory for resale b. Buying and selling stocks and bonds of other companies c. Selling shares of stock to investors for cash d.
- A company paid cash dividends of $350,000. Classify this transaction as an operating activity, an investing activity, or a financing activity. Is it a source of cash or a use of cash?
- The sale of land for cash is analyzed on the statement of cash flows as: a. operating activities b. investing activities c. financing activities d. does not represent cash flow
- Is purchasing equipment by paying cash a cash flow from operating activities, investing activities, or financing activities? Explain.
- Suppose a business pays $75,000 to an account payable. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activities.
- The statement of cash flows reports _________. a. Cash flows from operating activities. b. Cash flows from financing activities. c. Cash flows from investing activities. d. Significant non-cash financing and investing activities. e. All of these
- Cash flows from acquiring and disposing of non-current assets are classified as: a. purchasing activities. b. operating activities. c. financing activities. d. investing activities.
- A company declared and paid a cash dividend. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
- A transaction consists of a debit to Treasury Stock for $7,800 and a credit to Cash for $7,800. What type of activity does this record? a. operating activity b. investing activity c. financing activity d. non-cash investing and financing activity
- A transaction consists of a debit to Treasury Stock for $13,000 and a credit to Cash for $13,000. What type of activity does this record? a. operating activity b. investing activity c. financing activity d. non-cash investing and financing activity
- What is the appropriate section in the statement of cash flows for reporting the issuance of common stock for cash? a. operating activities b. financing activities c. investing activities d. schedule of non-cash investing or financing activities e. none o
- On the statement of cash flows, in which section would the purchase of land appear? a. Non-cash activities b. Operating activities c. Investing activities d. Financing activities
- A company issued common stock for cash. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
- Cash received from the issuance of bonds would be reported on a statement of cash flows under: a. investing activities. b. operating activities. c. noncash activities. d. financing activities.
- a. Which types of business transactions would result in cash from operating activities? b. Give three examples of transactions that would be classified as cash flows from operating activities.
- Lending money and collecting the loans are A. Non-cash investing and financing activities. B. Operating activities. C. Investing activities. D. Financing activities.
- Proposed dividend is classified as: a. investing activity. b. financing activity. c. operating activity. d. cash equivalent.
- Cash flows from borrowing and paying off a 90-day bank loan are classified as: a. operating activities b. investing activities c. financing activities d. purchasing activities
- Is cash received from issuing new common stock classified as an operating activity, an investing activity, or a financing activity? Explain.
- Lending money and collecting the loans are: a) investing activities b) financing activities c) operating activities d) non-cash investing and financing activities
- A company issued bonds payable for cash. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
- An example of a cash flow from an operating activity is: a) payment to employees for services. b) payment of dividends to stockholders. c) receipt of proceeds from the sale of an investment. d) receipt of proceeds from the sale of common stock to stockho
- Is collecting cash on account from customers a cash flow from operating activities, investing activities, or financing activities? Explain.
- The statement of cash flows reports: a. Cash flows from operating activities. b. Cash flows from financing activities. c. Cash flows from investing activities. d. Significant noncash financing and investing activities. e. All of these.
- The statement of cash flows presents the flows into which three groups of business activities? A. Operating, nonoperating, and financing. B. Operating, investing, and financing. C. Operating, nonoperating, and investing.
- The order of activities on the statement of cash flows is ______. (a) operating, investing, and financing (b) operating, financing, and investing (c) financing, operating, and investing (d) financing, investing, and operating.
- What is the appropriate section in the statement of cash flows for reporting the purchase of equipment for cash? a. operating activities b. financing activities c. investing activities d. schedule of non-cash investing or financing activities e. none of t
- A company sold one of its warehouses for $750,000. Classify this transaction as an operating activity, an investing activity, or a financing activity. Is it a source of cash or a use of cash?
- Cash flows related to buying and selling long-term assets are classified as: A. non-cash activities. B. investing activities. C. operating activities. D. financing activities.
- A company received $30,000 cash from the issue of common stock. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
- In a statement of cash flows, receipts from sales of property, plant, and equipment generally are classified as a. Investing activities b. Selling activities c. Operating activities d. Financing activities
- Differentiate between operating activities, investing activities, and financing activities.
- Is cash paid for income taxes classified as an operating activity, an investing activity, or a financing activity?
- Activities that involve the cash effects of transactions that enter into the determination of net income are classified as: a. operating activities. b. investing activities. c. financing activities. d. non-cash activities.
- In a statement of cash flows, receipts from sales of property, plant, and equipment should be classified as a _______. (a) operating activity (b) financing activity (c) investing activity (d) selling activity.
- Cash paid for preferred stock dividends should be shown on the statement of cash flows under: a. Operating Activities. b. Investing Activities. c. Financing Activities. d. Non-cash Investing and Financing Activities.
- What investing and financing activities does the company have? What are some other examples of investing and financing activities?
- Would cash received from the sale of a building be reported on the statement of cash flows as an operating activity, an investing activity, or a financing activity, or does it not appear at all?
- Making and collecting loans and disposing of property, plant, and equipment are: a. operating activities. b. investing activities. c. financing activities. d. liquidity activities.
- Classify the following activity from a section of the Statement of Cash Flows as (1) Investing, (2) Financing, (3) Operating or (4) Significant Non-Cash Activity: Exchanged one fixed asset for another fixed asset.
- Indicate the type of activity (operating activity, financing activity, investing activity, noncash transaction) the following transaction represents. Company sold shares of its own stock for cash.
- A company paid cash dividends of $2,000,000. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
- Activities that pay and collect interest on loans are: A. financing and investing activities. B. operating and financing activities. C. marketing activities. D. operating and investing activities.
- Match the transaction/event to one of the following activities of an organization: financing activities (F), investing activities (I), or operating activities (O). The organization borrows money from a bank.
- Paying off bonds payable is reported on the statement of cash flows under: a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities