Which of the following is considered a financing activity when preparing the statement of cash flows?
A) cash payment for the purchase of equipment
B) cash payment for extending credit to others
C) cash receipt from the sale of common stock
D) payment of interest on a bond issue

Question

Quizplus · Accepted Answer

Financing activities include transactions involving equity and debt, such as issuing stock or borrowing money. Cash receipts from the sale of common stock are considered a financing activity.

Which of the Following Is Considered a Financing Activity When