Which of the Following Would Not Be a Financing Activities

question 81

Multiple Choice

Which of the following would not be a financing activities cash flow?

• A)Issuing common stock for cash.
• B)Cash dividend payments.
• C)Purchasing treasury stock.
• D)Purchase of a building by signing a note payable.

---

Definitions:

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.

Common Stock

Equity shares that represent a form of corporate ownership, entitling the shareholder to a share of the company's success through dividends and or capital appreciation.

Stock Split

A corporate action that increases the number of shares in a company, reducing the price per share without changing the market capitalization.

Preferred Stock

A type of stock that gives holders preferential treatment over common stockholders regarding dividends and claims on assets in case of liquidation.