Which of the following would be classified as a financing activity on the statement of cash flows?
A)Interest paid to a lender.
B)Dividends paid to the company's common stockholders.
C)Cash paid to acquire a long-term investment.
D)Cash received from a loan that was made to another company.

Question

Quizplus · Accepted Answer

Dividends paid to the company's common stockholders are classified as a financing activity because they represent a return of capital to the shareholders.

Which of the Following Would Be Classified as a Financing