Which of the following would be classified as a cash flow from financing activities on the cash flow statement?

Question

Quizplus · Accepted Answer

Dividends paid would be classified as a cash flow from financing activities because it involves distributing profits to shareholders, who are considered providers of capital. Interest received (A) would be classified as a cash flow from operating activities, purchase of an intangible asset to be used in operations (C) would be classified as a cash flow from investing activities, and purchase of securities of another company to be held for the long-term (D) could be classified as either a cash flow from investing or financing activities depending on the company's intention for holding the securities.

Which of the Following Would Be Classified as a Cash