Cash flows from financing activities do not include:
A) cash received from issuing preferred stock.
B) cash paid for treasury stock.
C) declaration of a cash dividend.
D) repayment of a bank loan.

Question

Quizplus · Accepted Answer

Cash flows from financing activities include transactions involving long-term liabilities, equity, and dividends paid to shareholders. Therefore, the correct answer is C, as it is an operating activity. A is correct, as it involves the issuance of preferred stock, which is a financing activity. B is correct, as it involves the repurchase of shares, which is a financing activity. D is correct, as it involves the repayment of a long-term liability, which is a financing activity.

Cash Flows from Financing Activities Do Not Include