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) purchasing activities.

Question

Quizplus · Accepted Answer

Cash flows from issuing and repurchasing stock, as well as issuing and repaying debt, are activities that involve the company's financing structure. Therefore, they are classified as financing activities in the statement of cash flows.

Cash Flows from Issuing and Repurchasing Stock or Issuing and Repaying