Which of the Following Is Not a Cash Inflow from Financing

question 59

Multiple Choice

Which of the following is not a cash inflow from financing activities?

• A) issuance of stock
• B) sale of treasury stock
• C) purchase of bond investment
• D) sale of bonds payable

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Current Ratio

A financial ratio indicating how well a firm can cover its short-term liabilities with its present assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business, whichever is longer.

Current Liabilities

Financial obligations a company is expected to settle within one year or within its normal operating cycle, whichever is longer.