Which of the following would be included in cash flows from financing activities?
A)Cash proceeds from sales.
B)Cash received from a sale of land.
C)Dividends paid to stockholders.
D)Cash used to purchases of equipment.

Question

Quizplus · Accepted Answer

Cash flows from financing activities include transactions related to borrowing or repaying debt and transactions related to issuing or buying back stock. Dividends paid to stockholders fall under the category of transactions related to issuing or buying back stock. The other options listed would fall under cash flows from operating activities or cash flows from investing activities.

Which of the Following Would Be Included in Cash Flows