Answer
(a) Issuing shares of common stock.
Work Step by Step
Financing activities involve obtaining or repaying funds used to finance the business. Examples include:
- Issuing shares of stock (to raise equity capital).
- Borrowing money (issuing notes or bonds).
- Paying dividends or repaying loans.
Selling goods on account → Operating activity
Buying delivery equipment → Investing activity
Buying inventory → Operating activity
Therefore, the correct answer is (a) Issuing shares of common stock.
