Which of the following is not a typical cash flow under financing activities?
A) cash inflow from sale of equity securities
B) cash inflow from sale of bonds
C) cash outflow for payment of dividends
D) cash outflow for loans to other entities
E) cash outflow for payment of amounts borrowed

Question

Quizplus · Accepted Answer

Cash outflow for loans to other entities is considered an investing activity, not a financing activity. Financing activities typically involve transactions related to equity and debt, such as issuing stock, borrowing funds, and paying dividends.

Which of the Following Is Not a Typical Cash Flow