Which of the following cash flows results from a financing activity?
A)Borrowing money from the bank
B)Receiving a cash dividend of $3 per share
C)Paying income taxes at end of year
D)All of these answer choices result from financing activities

Question

Quizplus · Accepted Answer

Borrowing money from the bank is a type of financing activity as it involves obtaining funds to finance the operations or other activities of the company. Receiving a cash dividend (B) is a type of investing activity as it represents a return on an investment in the company's stock. Paying income taxes (C) is a type of operating activity as it relates to the company's expenses and taxes due on its operations. Therefore, only option A results from a financing activity.

Which of the Following Cash Flows Results from a Financing