Which of the following transactions would be reported in the cash flow statement as a cash flow from financing activities?
A)The cash payment of interest expense.
B)Acquiring land by signing a note payable.
C)Paying cash to stockholders for dividends.
D)Purchasing shares of stock of another company using cash.

Question

Quizplus · Accepted Answer

Paying cash to stockholders for dividends is a cash outflow from financing activities. Option A is a cash outflow from operating activities. Option B is a cash inflow from financing activities. Option D is a cash outflow from investing activities.

Which of the Following Transactions Would Be Reported in the Cash