Cash flows that result from debt and equity financing transactions, including incurrence and repayment of debt, cash inflows from the sale of stock, and cash outflows to pay cash dividends or repurchase stock are called cash flow from ________.

Question

Quizplus · Accepted Answer

Cash flows from financing activities include any inflows or outflows of cash that result from financing decisions, such as issuing or repaying debt, selling or repurchasing equity, or paying cash dividends. This category reflects the cash flows that directly affect the company's capital structure and funding sources, and is separate from cash flows related to operating or investing activities.

Cash Flows That Result from Debt and Equity Financing Transactions