Which of the following categories on a statement of cash flows is used to report the cash flow effects of transactions involving a company's stock?
A) Operating Activities
B) Investing Activities
C) Financing Activities
D) Profit Activities

Question

Quizplus · Accepted Answer

Transactions involving a company's stock fall under the category of financing activities on the statement of cash flows. This includes issuing or repurchasing common stock, paying dividends, and taking out loans. Operating activities refer to a company's main business activities such as sales and expenses, while investing activities refer to the buying and selling of long-term assets. Profit activities are not a recognized category on the statement of cash flows.

Which of the Following Categories on a Statement of Cash