Which of the following is a financing activity?
A) Repayment of loan by other entity
B) Share buyback
C) Discount received
D) Discount allowed

Question

Quizplus · Accepted Answer

Share buyback is a financing activity as it involves using cash to buy back the company's own shares which reduces the total number of outstanding shares and increases the ownership percentage of the remaining shareholders.

Option A is incorrect because repayment of loan by other entity is a cash inflow from investing activity.
Option C and D are incorrect because discount received and discount allowed are cash flows from operating activities.

Which of the Following Is a Financing Activity