Which of the following would NOT be a cash flow from financing activities for Carlton Company?
A) Cash from issuance of Carlton Co.common stock
B) Cash from issuance of Carlton Co.preferred stock
C) Cash from issuance of Carlton Co.bonds payable
D) Cash from sale of Fern Company common stock

Question

Quizplus · Accepted Answer

Cash from sale of Fern Company common stock is not a cash flow from financing activities for Carlton Company because it involves the sale of another company's stock and is therefore classified as a cash flow from investing activities. The other options involve the issuance of Carlton Company's own stock or bonds, which are classified as financing activities.

Which of the Following Would NOT Be a Cash Flow