Asked by
Alicia Reynolds
on Oct 09, 2024
Verified
Which of the following would be classified as a financing activity on the statement of cash flows?
A) Paying suppliers for inventory purchases.
B) Interest paid to lenders.
C) Lending money to another company.
D) Repurchasing capital stock from owners.
Financing Activity
Transactions and events where cash is obtained from or repaid to investors and creditors, excluding those relating to operating and investing activities.
Capital Stock
The total amount of a company's share equity including both common and preferred shares, representing the initial investment in the business.
- Decode the components and classifications in the cash flow statement.
- Distinguish and categorize activities in operations, finance, and investments with accuracy.
- Evaluate the consequences of debt and equity dealings on the finance segment of the cash flow statement.
Verified Answer
JK
Learning Objectives
- Decode the components and classifications in the cash flow statement.
- Distinguish and categorize activities in operations, finance, and investments with accuracy.
- Evaluate the consequences of debt and equity dealings on the finance segment of the cash flow statement.
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