Examples of financing activities on the statement of cash flows do NOT include:
A)payment of note payable.
B)payment of dividends.
C)repurchase of company's own stock.
D)sale of a piece of equipment for cash.

Question

Quizplus · Accepted Answer

Financing activities typically involve transactions related to long-term investments, such as issuing or retiring debt, issuing or repurchasing equity, and paying dividends. Selling a piece of equipment for cash is considered an investing activity, not a financing activity. Therefore, option D is not an example of financing activity on the statement of cash flows. Options A, B, and C are examples of financing activities.

Examples of Financing Activities on the Statement of Cash Flows