An example of a cash inflow from financing activities is:

Question

Quizplus · Accepted Answer

Cash receipts from issuance of bonds is an example of cash inflow from financing activities. This is because the issuance of bonds provides a source of funding for a company's operations, and the cash received from the bond issuance is classified as a cash inflow from financing activities on the statement of cash flows.

A, C, and D are not examples of cash inflows from financing activities. Cash receipts from sale of investments (A) would be classified as a cash inflow from investing activities. Selling a building (C) would also be categorized as a cash inflow from investing activities. Finally, gain on sale of land (D) is an accounting entry that does not involve cash; therefore, it does not impact the statement of cash flows.

An Example of a Cash Inflow from Financing Activities Is