Asked by DYLAN PANGIA on Jun 14, 2024
Verified
Which of the following is included in the cash flows from financing activities section of the statement of cash flows?
A) Interest revenue.
B) Sale of equipment.
C) Interest expense.
D) Purchase of treasury stock.
E) Purchase of stock in another company.
Financing Activities
Transactions and events where cash is raised or repaid to investors and creditors, such as issuing shares or borrowing loans.
Interest Expense
The cost incurred by an entity for borrowed funds over a period of time.
Treasury Stock
Shares that were issued by a company and then repurchased, reducing the amount of outstanding stock on the open market.
- Understand how cash flows from financing activities are reported.
Verified Answer
QJ
Qiana JohnsonJun 17, 2024
Final Answer :
D
Explanation :
The purchase of treasury stock is included in the cash flows from financing activities section of the statement of cash flows because it relates to transactions with the company's owners, affecting the equity of the company.
Learning Objectives
- Understand how cash flows from financing activities are reported.