Which one of the following would not be a cash outflow from financing activities for ABC Company?
A) Cash paid for dividends on ABC common stock.
B) Cash paid for purchase of XYZ common stock.
C) Cash paid for dividends on ABC preferred stock.
D) Cash paid for interest on ABC bonds payable.

Question

Quizplus · Accepted Answer

Cash paid for purchase of XYZ common stock would be a cash outflow from investing activities, not financing activities. The other options (A, C, and D) are all examples of cash outflows from financing activities.

Which One of the Following Would Not Be a Cash