Cash flows from financing activities include all of the following except:
A)payment of long-term debt.
B)payment of interest.
C)proceeds from stock issuance.
D)cash dividends paid.

Question

Quizplus · Accepted Answer

GAAP requires the payment of interest to be classified as a cash outflow from operating activities because it enters into the determination of net income.Cash flows from financing activities include exchanges of cash with stockholders (such as proceeds from stock issuance and payments of cash dividends)and cash exchanges with lenders (such as the payment of long-term debt).

Cash Flows from Financing Activities Include All of the Following