U.S.GAAP classifies all of the following as financing activities on the statement of cash flows except
A)cash inflows from issuance of bonds.
B)cash inflows from selling capital stock of the entity.
C)cash outflows to lender for interest.
D)cash outflows to repurchase capital stock of the entity.
E)cash outflows to repurchase bonds of the entity.

Question

Quizplus · Accepted Answer

Cash outflows to lenders for interest are classified as operating activities on the statement of cash flows under U.S.GAAP. All the other options listed are classified as financing activities.

USGAAP Classifies All of the Following as Financing Activities on the Statement