Cash flows from financing activities include all but one of the following:

Question

Quizplus · Accepted Answer

Cash flows from financing activities are related to obtaining or repaying capital from owners or creditors. Issuing and paying out on insurance contracts is not a financing activity. Therefore, option B is the correct answer. The other options, cash payments on the principal of long-term debt, buying ordinary shares, and cash proceeds from a bank loan, are all financing activities because they involve either taking on or paying back capital.

Cash Flows from Financing Activities Include All but One of the Following