Series 79 practice questionmediumCash Flow Statement - Financing
Which of the following transactions would be reflected in the cash flow from financing activities section of the cash flow statement?
- APayment to suppliers for inventory
- BIssuance of new shares✓ Correct answer
- CPurchase of property, plant, and equipment
- DReceipt of interest income
Explanation
Why B — Issuance of new shares
Issuance of new shares is a financing activity. Payments to suppliers are operating activities, asset purchases are investing, and interest income is generally operating.
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