Which one of the following would not be a cash inflow from financing activities for ABC Company?
A) Cash from issuing ABC common stock
B) Cash from issuing ABC preferred stock
C) Cash from issuing ABC bonds payable
D) Cash from sale of XYZ common stock

Question

Quizplus · Accepted Answer

Cash from the sale of XYZ common stock is not a cash inflow from financing activities for ABC Company as it is not related to ABC's own financing activities. It is related to the financing activities of XYZ Company. Choices A, B, and C are cash inflows from financing activities for ABC Company as they all relate to ABC's own financing activities of issuing its own stock or bonds payable.

Which One of the Following Would Not Be a Cash