Which of the following would be included in the "cash flows from financing activities" section of the statement of cash flows?
A) Collected cash from accounts receivable.
B) Loaned cash to another company.
C) Paid cash dividend to stockholders.
D) Purchased insurance.

Question

Quizplus · Accepted Answer

Cash dividend payments to stockholders are a financing activity because they represent a distribution of profits to the owners of the company. Choices A, B, and D are not financing activities – they would likely be included in the "cash flows from operating activities" or "cash flows from investing activities" sections of the statement of cash flows.

Which of the Following Would Be Included in the "Cash