Which of the following will not affect cash in the financing section of the Statement of Cash Flows?
A)increasing long or short term debt
B)selling common or preferred shares of stock
C)converting debt to common stock
D)repurchasing common shares of stock
E)paying dividends

Question

Quizplus · Accepted Answer

Converting debt to common stock is a non-cash financing activity and does not affect cash; it is merely an exchange of one form of financing for another without the use of cash.

Which of the Following Will Not Affect Cash in the Financing