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When a company issues owner's equity shares, what does it result in?
  • a)
    Inflow of cash
  • b)
    Outflow of cash
  • c)
    No impact on cash flow
  • d)
    Decrease in profits
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
When a company issues owner's equity shares, what does it result in?a)...
When a company issues owner's equity shares, it results in an inflow of cash. This is because the owners or shareholders invest their money into the business in exchange for equity shares, which increases the cash position of the business.
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When a company issues owner's equity shares, what does it result in?a)Inflow of cashb)Outflow of cashc)No impact on cash flowd)Decrease in profitsCorrect answer is option 'A'. Can you explain this answer?
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