Which of the following is an example of a cash inflow from a financing activity?
A)Issuance of bonds.
B)Sale of an intangible asset.
C)Receipt of cash dividends.

Question

Quizplus · Accepted Answer

Issuance of bonds is a financing activity that generates cash inflow for the company as it borrows funds from investors in exchange for issuing bonds. Choice B, sale of an intangible asset, is a cash inflow from an investing activity as it involves the sale of a long-term asset. Choice C, receipt of cash dividends, is a cash inflow from an operating activity as it represents a distribution of profits to shareholders.

Which of the Following Is an Example of a Cash