Question

What section of a cash flows statement shows the amount of cash received from shareholders in exchange for issuing additional shares of its stock to its shareholders? The property section The investing section The operating section This type of cash inflow would not be reported on the statement of cash flows. The financing section

Answer 1

Answer:

Financing section

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

By going through the meaning of each of the activities, the financing section would be the most appropriate option in the given transaction.