Which of the following items would not be classified as a cash flow from financing activities?
A)Payments of amounts owed to owners.
B)Borrowing from financial institutions.
C)Issuing additional common stock.
D)Making a payment on account.

Question

Quizplus · Accepted Answer

Cash flows from financing activities include exchanges of cash with stockholders and cash exchanges with lenders (for principal on loans).Making a payment on account would be classified as a cash outflow from operating activities,which are the cash inflows and outflows related directly to the revenues and expenses reported on the income statement.

Which of the Following Items Would Not Be Classified as a Cash