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All of the following are true regarding the statement of cash flows except: Multiple Choice Operating activities include transactions and events that affect net income. Financing activities include transactions that affect long-term liabilities and equity. Investing activities include transactions that affect issuance of common stock. Investing activities include transactions and events that come from the purchase and sale of long-term assets. Noncash activities are investing and financing activities that do not affect cash flows.

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Answer:  Investing activities include transactions that affect issuance of common stock.

Explanation:

The Cashflow statement records the cash transactions of a business and when using the Indirect approach, divides these transactions into three classes being: Operating, Investing and Financing activities.

Operating activities include transactions and events that affect the Net income of the company. Financing activities relate to the funding for the company so include long term liabilities and equity.

Investment involves long-term assets as well as investment into the securities of other companies. It therefore does not include transactions related to common stock as this falls under Financing activities.

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