Which of the following cash flows results from a financing activity?
A)Borrowing money from the bank
B)Receiving a stock dividend worth $3 per share
C)Paying income taxes at end of year
D)All of these ans choices result from financing activities

Question

Quizplus · Accepted Answer

Borrowing money from the bank is a cash inflow resulting from a financing activity. B is incorrect as it is a cash inflow resulting from an investing activity (receiving dividends on stock holdings). C is incorrect as it is a cash outflow resulting from an operating activity (payment of income tax). D is incorrect as only option A is a cash flow resulting from a financing activity.

Which of the Following Cash Flows Results from a Financing