Which of the Following Is Reported as a Financing Activity

question 188

Multiple Choice

Which of the following is reported as a financing activity on the statement of cash flows?

• A)Payment of cash dividends
• B)Declaration of cash dividends
• C)Stock dividend
• D)Stock split

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Definitions:

Debts Paid

The act of fulfilling financial obligations by repaying borrowed money or settling outstanding loans.

Journal Entry

A record in the books of accounts that documents a financial transaction with a date, accounts affected, and amounts to be debited or credited.

Fair Value

An estimate of the market price of an asset or liability based on current conditions and available market information.

Journal Entry

A record of a financial transaction in the accounting system, showing debits and credits.