Which of the following statements is true regarding cash flows from financing activities?
A)When companies borrow,cash outflows for financing activities have occurred.
B)When companies receive dividends,cash inflows from financing activities have occurred.
C)When companies repurchase their own stock,cash outflows for financing activities have occurred.
D)When companies pay dividends,cash inflows from financing activities have occurred.

Question

Quizplus · Accepted Answer

When companies repurchase their own stock, it results in cash outflows for financing activities because the company is using cash to buy back shares from investors.

Which of the Following Statements Is True Regarding Cash Flows