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17 June, 17:13

Which of the following would be classified as a financing activity on the statement of cash flows?

Paying suppliers for inventory purchases.

Interest paid to lenders.

Lending money to another company.

Repurchasing capital stock from owners.

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  1. 17 June, 17:36
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    Answer: Repurchasing capital stock from owners.

    Explanation: The transactions affecting equity and long term liabilities of a company are specified as financing activities in a cash flow statement.

    These transactions are usually made for financing of company projects or for expansion purposes.

    Among all other options only repurchasing of capital stock will result in reduction of long term liability of the company.

    Hence, option D is correct.
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Home » Business » Which of the following would be classified as a financing activity on the statement of cash flows? Paying suppliers for inventory purchases. Interest paid to lenders. Lending money to another company. Repurchasing capital stock from owners.
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