Which of the following events will appear in the cash flows from financing activities section of the statement of cash flows?
A) Cash purchases of equipment.
B) Cash purchases of bonds issued by another company.
C) Cash received as repayment for funds loaned.
D) Cash purchase of treasury stock.

Question

Quizplus · Accepted Answer

Cash purchase of treasury stock is a financing activity as it involves the use of cash to buy back own stocks, which reduces the company's equity and increases its debt. Cash purchases of equipment and cash purchases of bonds issued by another company are investing activities, while cash received as repayment for funds loaned is an operating activity.

Which of the Following Events Will Appear in the Cash