Which of the following will be categorized as a financing activity on the statement of cash flows?
A) Cash received by selling old equipment
B) Cash paid for purchase of new machinery
C) Cash paid for rent
D) Cash contribution by owner

Question

Quizplus · Accepted Answer

Cash contributions by the owner are considered financing activities because they involve cash flows related to the company's equity, such as investments by owners or distributions to owners.

Which of the Following Will Be Categorized as a Financing