An example of a cash inflow from financing activities is
A) the sale of common stock.
B) interest paid on notes payable.
C) payment for additional inventory.
D) buying debt and equity securities.

Question

Quizplus · Accepted Answer

The sale of common stock is an example of cash inflow from financing activities as it represents the funds raised by a company from the issuance of equity securities. This represents a financing activity as it involves the company obtaining resources from external sources to support its operations or investments. The other options listed are not examples of cash inflow from financing activities. Interest paid on notes payable represents an outflow of cash from financing activities, payment for additional inventory is an outflow of cash from operating activities, and buying debt and equity securities represents an outflow of cash from investing activities.

An Example of a Cash Inflow from Financing Activities Is