In a statement of cash flows,all of the following would be classified as financing activities except:
A)the collection of cash related to a loan made to another entity.
B)the payment of a cash dividend on the company's own common stock.
C)the cash paid to retire bonds payable.
D)the sale of the company's own common stock for cash.

Question

Quizplus · Accepted Answer

Financing activities involve transactions that affect the long-term liabilities and equity of the company. Options B, C, and D all involve either paying out or receiving cash related to the company's own stock or debt, which are examples of financing activities. Option A involves collecting cash related to a loan made to another entity, which is not a financing activity but rather an investing activity.

In a Statement of Cash Flows,all of the Following Would