Asked by Parker Stanger on Jul 11, 2024
Verified
Of the following, which has a positive effect on the computation of cash flow from financing using the indirect method?
A) Increase to Dividends
B) Increase in Accounts Payable
C) Issuing Common Stock
D) Sale of Equipment
Common Stock
Equity securities representing ownership in a corporation, entitling holders to a share of the profits in the form of dividends.
Dividends
Payments made to shareholders out of a company's profits or reserves, representing the shareholders' share in the earnings of the company.
Financing Method
Strategies or means by which a company or individual raises funds to support operations, investment activities, or expansions.
- Evaluate the effect of particular financial activities, such as the issuance of common stock and the buying of treasury stock, on the cash flow statement.
Verified Answer
Learning Objectives
- Evaluate the effect of particular financial activities, such as the issuance of common stock and the buying of treasury stock, on the cash flow statement.
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