Which of the following is not a financing activity?
A)Issuing bonds for cash
B)Selling an investment in IBM stock for cash
C)Purchasing a company's own stock (treasury stock)for cash
D)Making a cash payment to repay a bank loan

Question

Quizplus · Accepted Answer

Selling an investment in IBM stock for cash is classified as an investing activity, as it involves the sale of a long-term asset. The other options (issuing bonds for cash, purchasing treasury stock for cash, making a cash payment to repay a bank loan) are all financing activities as they involve changes in the company's liabilities or equity.

Which of the Following Is Not a Financing Activity