Which of the following would not be a cash flow from financing activities for Carlton Company?
A) Cash from issuance of Carlton Co. common stock
B) Cash from issuance of Carlton Co. preferred stock
C) Cash from issuance of Carlton Co. bonds payable
D) Cash from sale of Fern Company common stock

Question

Quizplus · Accepted Answer

The cash flow from financing activities includes the cash inflows and outflows from transactions that involve borrowing or repaying debt, issuing or repurchasing stock, and payment of dividends. The sale of Fern Company common stock is not a transaction involving Carlton Company's financing activities, so it would not be included in the cash flow from financing activities.

Which of the Following Would Not Be a Cash Flow