Asked by Danielle Toone on Jun 23, 2024
Verified
Cash payments to buy back shares will be classified as:
A) cash flow from operating activities.
B) cash flow from investing activities.
C) cash flow from financing activities.
D) none of the above.
Financing Activities
Transactions and events that affect a company's capital structure, including borrowing, repaying debt, issuing equity, and paying dividends.
- Recognize and categorize different kinds of cash flow activities: operational, investment, and financial.
Verified Answer
NB
Nicole BushellJun 25, 2024
Final Answer :
C
Explanation :
Cash payments to buy back shares represent the use of cash to reduce the equity component of the company's balance sheet. Thus, they are classified as cash flow from financing activities.
Learning Objectives
- Recognize and categorize different kinds of cash flow activities: operational, investment, and financial.
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