Which of the following would be included in cash flows from financing activities?Multiple ChoiceCash proceeds from sales.Cash received from a sale of land.Cash dividends paid.Cash used for purchases of equipment.
Question
Which of the following would be included in cash flows from financing activities?Multiple ChoiceCash proceeds from sales.Cash received from a sale of land.Cash dividends paid.Cash used for purchases of equipment.
Solution
The correct answer is "Cash dividends paid." This falls under financing activities because it involves the movement of cash between the company and its investors or owners. Financing activities include issuing or buying back company stock, issuing or repaying debt, and paying dividends. The other options - cash proceeds from sales, cash received from a sale of land, and cash used for purchases of equipment - are all examples of operating or investing activities, not financing activities.
Similar Questions
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