Final answer:
Cash received from the issuance of common stock is classified as a financing activity in a statement of cash flows, as it pertains to raising capital for the company's operations and growth.
Step-by-step explanation:
In a statement of cash flows, cash received from the issuance of common stock would be classified as a C) Financing activity. This is because it relates to transactions that involve the ways a company funds its operations and expansions, which includes issuing equity or taking on debt.
When a company issues stock, it is essentially raising capital by selling ownership in the company, and this is considered a financing activity. It is distinct from operating activities, which are related to the primary revenue-producing operations of the company, and investing activities, which pertain to the purchase and sale of long-term assets.