Cash ﬂows from ﬁnancing activities could include:
A)Sales of non-current assets.
B)Buying back it's own shares..
C)Purchase of intangible assets.
D)Purchase of property, plant and equipment.
E)Cash generated from operations.

Question

Quizplus · Accepted Answer

Buying back its own shares is a financing activity since it involves using cash to reduce the number of shares outstanding, thus increasing the value of each remaining share. Sales of non-current assets, purchase of intangible assets, purchase of property, plant and equipment, and cash generated from operations are all examples of investing or operating activities, not financing activities.

Cash ﬂOws from ﬁNancing Activities Could Include