Financing activities on the cash flow statement do not include
A)issuance of stock.
B)payment of dividends.
C)borrowing from banks.
D)payment of interest expense.
E)acquiring previously issued bonds.

Question

Quizplus · Accepted Answer

Financing activities include transactions involving issuing stock, paying dividends, borrowing from banks, and acquiring or repaying debt. Payment of interest expense is considered an operating activity, not a financing activity, as it relates to the cost of conducting business.

Financing Activities on the Cash Flow Statement Do Not Include