Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010
-All of the following are financing cash flows EXCEPT
A) sale of stock.
B) payment of bonuses.
C) increasing debt.
D) repurchasing stock.

Question

Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010 
-All of the following are financing cash flows EXCEPT
A) sale of stock. 
B) payment of bonuses. 
C) increasing debt. 
D) repurchasing stock.

Quizplus · Accepted Answer

Payment of bonuses is an operating expense and not a financing cash flow activity. Sale of stock, increasing debt, and repurchasing stock are all examples of financing cash flows.

Table 4.1 Ruff Sandpaper Co