Which of the following is considered to be a cash flow provided/(used) by financing activities?

Question

Quizplus · Accepted Answer

Proceeds from issuing common stock are considered a cash flow provided by financing activities, as it represents funds coming into the company from the issuance of new equity. Dividends received from stock investments (A) are considered a cash flow from investing activities, as it represents returns on investments made by the company. Cash received from customers for amounts due on account (B) is considered a cash flow from operating activities, as it represents revenue generated from the company's core operations. Interest paid on short-term notes payable (D) is also considered a cash flow from financing activities, as it represents funds going out of the company to service debt.

Which of the Following Is Considered to Be a Cash