Analysis of the financing activities section of the statement of cash flows will disclose
A)the extent of investments in plant and equipment.
B)net income for the period.
C)purchases and sales of treasury stock.
D)the amount of money loaned to others.

Question

Quizplus · Accepted Answer

The financing activities section of the statement of cash flows reports on the issuance and repurchase of company stock, as well as any dividends paid to shareholders. This section may also include information on changes to the company's long-term debt, such as the issuance of new bonds or the repayment of existing loans. Therefore, purchases and sales of treasury stock, which is a form of equity financing, would be disclosed in this section. None of the other options listed are necessarily reported in the financing activities section.

Analysis of the Financing Activities Section of the Statement of Cash