Which of the following would be reported in the financing activities section of a cash flow statement?
Posted: Sat Aug 07, 2021 6:57 am
A) Cash paid for dividends to stockholders.
B) Cash paid for interest expense.
C) Cash paid to acquire equipment.
D) Cash received from sale of investments.
Answer: A
Explanation: The financing activities section of the statement of cash flows reflects cash
received and paid out as a result of financing the business. Cash paid for dividends to
stockholders is part of this section because stockholders are a component of the financing of a
business.
B) Cash paid for interest expense.
C) Cash paid to acquire equipment.
D) Cash received from sale of investments.
Answer: A
Explanation: The financing activities section of the statement of cash flows reflects cash
received and paid out as a result of financing the business. Cash paid for dividends to
stockholders is part of this section because stockholders are a component of the financing of a
business.