Analysis of the financing activities section of the statement of cash flows will disclose
purchases and sales of treasury stock.
net income for the period.
the amount of money loaned to others.
the extent of investments in plant and equipment.
Solution
Correct answer is Option A => purchases and sales of treasury stock.
Explanation: Treasury stock is common stock bought back. As common stock is a financing source for firm, any cash transaction related to each will involve financing cash flows.
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Analysis of the financing activities section of the statement of cash.docx
1. Analysis of the financing activities section of the statement of cash flows will disclose
purchases and sales of treasury stock.
net income for the period.
the amount of money loaned to others.
the extent of investments in plant and equipment.
a. purchases and sales of treasury stock.
b. net income for the period.
c. the amount of money loaned to others.
d. the extent of investments in plant and equipment.
Solution
Correct answer is Option A => purchases and sales of treasury stock.
Explanation: Treasury stock is common stock bought back. As common stock is a financing
source for firm, any cash transaction related to each will involve financing cash flows.
