Which of the following would not be a cash flow from financing activities?
A)Issuance of common shares.
B)Borrowing on a long-term note payable.
C)Repayment of principal on a long-term note payable.
D)Collection of a cash dividend.

Question

Quizplus · Accepted Answer

Collection of a cash dividend is not a cash flow from financing activities. It is a cash flow from investing activities since it represents a return on an investment in equity securities. A, B, and C are all cash flows from financing activities as they involve either the issuance or repayment of financing sources such as common stock or long-term debt.

Which of the Following Would Not Be a Cash Flow