Which of the following items would be classified as a cash flow from investing activities?1)Issue common stock for cash2)Payment on principal of note payable3)Payment of dividends4)Sale of equipment for cash
A)1 and 4
B)4 only
C)3 only
D)1, 2, 3, and 4

Question

Quizplus · Accepted Answer

Only the sale of equipment for cash is classified as a cash flow from investing activities. Issuing common stock is a cash flow from financing activities, payment on principal of note payable is a cash flow from financing or operating activities depending on the nature of the note and payment of dividends is a cash flow from financing activities.

Which of the Following Items Would Be Classified as a Cash