Which of the following would be a financing activities cash flow?
A)Common stock dividends received from an investment in another company.
B)Interest payments.
C)Purchase of treasury stock.
D)Purchase of a building by signing a note payable.

Question

Quizplus · Accepted Answer

Financing activities involve transactions between a company and its creditors and investors, such as issuing stock, paying dividends, and repurchasing shares. The purchase of treasury stock (C) is a financing activity because it involves the company buying back its own shares from investors, which affects the equity section of the company's balance sheet.

Which of the Following Would Be a Financing Activities Cash