Which of the following is true?
A) The sale of stock to stockholders is an investing activity.
B) The repurchase of stock from stockholders is an investing activity.
C) The declaration of stock dividends is a financing activity.
D) The payment of cash dividends is a financing activity.

Question

Quizplus · Accepted Answer

The payment of cash dividends is considered a financing activity because it involves the outflow of cash to shareholders, which is related to the company's financing and capital structure decisions. The other options are incorrectly categorized according to standard accounting practices.

Which of the Following Is True