Which of the following statements is not correct?
A)Cash flow from financing activities increases when treasury shares are resold.
B)Cash dividends decrease cash flow from financing activities.
C)Cash flow from investing activities decreases when treasury shares are purchased.
D)Issuance of new shares of stock increases cash flow from financing activities.

Question

Quizplus · Accepted Answer

Treasury share transactions impact cash flow from financing activities, not investing activities. Purchasing treasury shares decreases cash flow from financing activities, while selling them increases it.

Which of the Following Statements Is Not Correct