A firm uses cash to _____ These amounts appear as cash flow from financing activities in the statement of cash flows.
A)pay dividends to shareholders
B)repay borrowing
C)reacquire outstanding common shares
D)reacquire outstanding preferred shares
E)all of the above

Question

Quizplus · Accepted Answer

All of the options listed involve the use of cash for financing activities, including paying dividends, repaying borrowing, and reacquiring outstanding common or preferred shares. All of these activities would be reflected in the cash flow from financing activities section of the statement of cash flows.

A Firm Uses Cash to _____ These Amounts Appear as Cash