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Which of the following is a financing activity?
a. Paying utilities for the month.
b. Issuing common stock to investors.
c. Selling equipment for cash.
d. Purchasing office supplies.
Which of the following is a financing activity?
a. Paying utilities for the month.
b. Issuing common stock to investors.
c. Selling equipment for cash.
d. Purchasing office supplies.
Which of the following is a financing activity?
a. Paying utilities for the month.
b. Issuing common stock to investors.
c. Selling equipment for cash.
d. Purchasing office supplies.
Solution
Answer b) - Issuing common stock to investors . is a f inancing activity. Financing activities
include the inflow of cash from investors, as well as the outflow of cash to shareholders as
dividends as the company generates income. Other activities which impact the long-term
liabilities and equity of the company are also listed in the financing activities.
In the above, paying utilities for the month a nd purchasing office supplies are operating cash
outflows ,
Selling equipment for cash i s an investing activity - inflow
Which of the following is a financing activity- a- Paying utilities fo.docx

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Which of the following is a financing activity- a- Paying utilities fo.docx

  • 1. Which of the following is a financing activity? a. Paying utilities for the month. b. Issuing common stock to investors. c. Selling equipment for cash. d. Purchasing office supplies. Which of the following is a financing activity? a. Paying utilities for the month. b. Issuing common stock to investors. c. Selling equipment for cash. d. Purchasing office supplies. Which of the following is a financing activity? a. Paying utilities for the month. b. Issuing common stock to investors. c. Selling equipment for cash. d. Purchasing office supplies. Solution Answer b) - Issuing common stock to investors . is a f inancing activity. Financing activities include the inflow of cash from investors, as well as the outflow of cash to shareholders as dividends as the company generates income. Other activities which impact the long-term liabilities and equity of the company are also listed in the financing activities. In the above, paying utilities for the month a nd purchasing office supplies are operating cash outflows , Selling equipment for cash i s an investing activity - inflow