If a corporation issues common stock for $50,000 cash, in which section of the statement of cash flows will this transaction be reported?
What will be an ideal response?
Issuing stock is reported in the financing activities section.
All cash exchanged between a company and its stockholders is considered a financing activity.
You might also like to view...
Which of the following best describes the amount of misstatement an auditor is willing to accept and still judge that an account balance is not materially misstated?
a. Tolerable misstatement. b. Performance materiality. c. A clearly trivial amount. d. Significant risk.
The complete normalization process is _____ and quite necessary for developing organization-wide databases.
Fill in the blank(s) with the appropriate word(s).
Burke Tires just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?
A. $41.59 B. $42.65 C. $43.75 D. $44.87 E. $45.99
A key function of the judiciary is to interpret and enforce the laws
a. True b. False Indicate whether the statement is true or false