Which of the Following Would Not Be Reported as a Financing

question 103

Multiple Choice

Which of the following would not be reported as a financing activity on the statement of cash flows?

• A) Cash receipts from issuing common stock
• B) Cash payments for interest
• C) Cash payments to purchase treasury stock
• D) Cash payments for dividends

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Definitions:

Borrowed Funds

Money that is borrowed from banks or other lenders that must be repaid, often with interest, according to agreed upon terms.

CCA

Canadian Controlled Private Corporation, regarding taxation in Canada, or can refer to Capital Cost Allowance, which is a tax deduction in Canada that represents depreciation for tax purposes.

Net Advantage

The total benefit gained from a financial decision or investment, taking into account all relevant costs and revenues.

Leased

A contractual arrangement where an owner of an asset allows another party to use that asset in return for payment over a specified period.