Asked by
Lewis Brooks
on Oct 09, 2024
Verified
Which one of the following transactions should be classified as a financing activity on the statement of cash flows?
A) Purchase of equipment.
B) Purchase of the company's own stock.
C) Sale of a long-term investment.
D) Payment of interest to a lender.
Financing Activity
Transactions that result in changes to the size and composition of the equity capital or borrowings of a company, as reported in the cash flow statement.
- Comprehend the elements and categories found in the statement of cash flows.
- Accurately discern and classify activities related to operations, financing, and investments.
- Analyze the impact of debt and equity transactions on the financial activities section in the cash flow statement.
Verified Answer
KT
Learning Objectives
- Comprehend the elements and categories found in the statement of cash flows.
- Accurately discern and classify activities related to operations, financing, and investments.
- Analyze the impact of debt and equity transactions on the financial activities section in the cash flow statement.
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