Cash flows from financing activities include all but one of the following:
A) Cash payments on the principal of long-term debt
B) Buying and selling bonds or stock of other firms
C) Cash purchases of treasury stock
D) Cash proceeds from a bank loan

Question

Quizplus · Accepted Answer

Cash flows from financing activities include all activities related to obtaining or repaying capital that is provided by investors or lenders outside of the company. This includes cash payments on the principal of long-term debt (A), cash purchases of treasury stock (C), and cash proceeds from a bank loan (D). Buying and selling bonds or stock of other firms (B) would be considered an investing activity, not a financing activity.

Cash Flows from Financing Activities Include All but One of the Following