Financing activities include all of the following except:
A)purchases of plant and equipment for cash.
B)payment of dividends to shareholders.
C)receipt of cash upon the issuance of bonds.
D)repurchase of company stock.

Question

Quizplus · Accepted Answer

Purchases of plant and equipment for cash are classified as investing activities, not financing activities. Financing activities involve raising capital or repaying debt, such as issuing bonds, paying dividends to shareholders, and repurchasing company stock.

Financing Activities Include All of the Following Except