The following item is classified as a 'financing activity' in the statement of cash flows:
A) payment of dividends through a dividend reinvestment scheme.
B) cash received from accounts receivable.
C) cash payment on redemption of the company's debentures.
D) cash payment to purchase debentures of another entity.

Question

Quizplus · Accepted Answer

Financing activities include transactions that affect the equity and borrowings of a company, such as issuing or redeeming debt.

The Following Item Is Classified as a 'Financing Activity' in the Statement