A company has paid cash to repurchase its common stock that was previously issued.Where will this cash flow be reported on the statement of cash flows?
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Stockholder activities.

Question

Quizplus · Accepted Answer

The repurchase of common stock is a financing activity, which involves a transaction between the company and its stockholders. Therefore, the cash flow from the repurchase of common stock will be reported in the financing activities section of the statement of cash flows.

A Company Has Paid Cash to Repurchase Its Common Stock