Which of the following is a cash outflow for a financing activity on the statement of cash flows?
A) purchase of long-term investments, such as the stock of another company
B) loans made to another party
C) purchase of treasury stock
D) purchase of land

Question

Quizplus · Accepted Answer

Purchase of treasury stock is a cash outflow for a financing activity because it involves the company buying back its own shares, which reduces the amount of equity outstanding and results in a cash outflow. The other options are cash outflows for investing activities (A and D) or operating activities (B).

Which of the Following Is a Cash Outflow for a Financing