Cash flows from issuing and repurchasing stock or issuing and repaying debt are classified as
A)operating activities.
B)investing activities.
C)financing activities.
D)borrowing activities.

Question

Quizplus · Accepted Answer

These activities are related to financing the business and are classified as financing activities in the statement of cash flows. Operating activities are related to the primary business activities of a company, while investing activities are related to acquiring or disposing of long-term assets. Borrowing activities would fall under financing activities as well.

Cash Flows from Issuing and Repurchasing Stock or Issuing and Repaying