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Series 79: Collection, Analysis & Evaluation of Data
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?

  1. APayment to suppliers for inventory
  2. BIssuance of new shares✓ Correct answer
  3. CPurchase of property, plant, and equipment
  4. DReceipt of interest income
Explanation

Why BIssuance 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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