Financing activities would include cash paid for:
A)The stock of another company.
B)Dividends to stockholders.
C)The purchase of treasury stock.
D)Both dividends to stockholders and the purchase of treasury stock.

Question

Quizplus · Accepted Answer

Financing activities involve activities that affect the company's long-term liabilities and equity, such as issuance or repurchase of stocks and payment of dividends. Therefore, both dividends paid to stockholders and the purchase of treasury stock fall under financing activities. The purchase of another company's stock would fall under investing activities.

Financing Activities Would Include Cash Paid For