Which of the Following Is Not a Typical Cash Flow

question 26

Multiple Choice

Which of the following is not a typical cash flow under financing activities?

• A)Cash inflow from sale of equity securities
• B)Cash inflow from sale of bonds
• C)Cash outflow for payment of dividends
• D)Cash outflow for loans to other entities
• E)Cash outflow for payment of amounts borrowed

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Definitions:

Investing Activities

Part of the cash flow statement that shows the cash spent on and generated from long-term asset operations and investments.

Long-Term Investments

Investments in stocks, bonds, or other assets that a company intends to hold for more than one fiscal year.

Interest Revenue

Income earned from lending money or investing in interest-bearing financial instruments.

Free Cash Flow

Cash Flows from Operating Activities less Dividends less Capital Expenditures.