Which of the following would be reported as a financing activity on the statement of cash flows?
A. Dividends collected from an investment in marketable securities.
B. Purchase of investment securities.
C. Note payable issued to purchase equipment.
D. Cash paid for the purchase of treasury stock.
Answer: D
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The last step in preparing a work sheet is to
a. prepare an adjusted trial balance; b. prepare a trial balance; c. total the Income Statement and the Balance Sheet columns; d. journalize the adjusting entries; e. analyze the financial statements.
When analyzing its portfolio of businesses with the Boston Consulting Group model, Disney views its movie brand as a star. What does this mean?
What will be an ideal response?
Financing activities on the cash flow statement do not include
a. issuance of stock. b. payment of dividends. c. borrowing from banks. d. payment of interest expense. e. acquiring previously issued bonds.
What is a vertical merger?
A) a merger between firms in totally unrelated businesses B) a merger that integrates the operations of a supplier and a customer C) a merger between two companies in similar fields whose sales do not overlap D) a merger between two or more companies that compete in the same business and geographical market