Cash flows from financing activities include (Solved)

Question:

Cash flows from financing activities include all of the following except:

a. payment of long-term debt.

b. payment of interest.

c. proceeds from stock issuance.

d. cash dividends paid.

Answer:

The answer is option b. payment of interest.

Explanation:

Payment of interest is typically included in the cash flows from operating activities section of a company’s cash flow statement rather than in the cash flows from financing activities section. The cash flows from financing activities section generally includes cash inflows and outflows resulting from activities such as obtaining or repaying loans, issuing or buying back stock, and paying dividends.

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