Asked by Michelle Mazur on Jun 11, 2024
Verified
Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?
A) retirement of bond payable
B) acquisition of treasury stock
C) declaration of stock dividends
D) issuance of long-term debt
Inflow of Cash
The total amount of money coming into a company, typically from operations, investments, and financing.
Statement of Cash Flows
A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.
Issuance of Long-Term Debt
The process by which a company borrows money from financial institutions or through the sale of bonds, agreeing to repay the principal, along with interest, over a period longer than one year.
- Efficiently discern and group cash inflows and outflows in the pertinent portions of the statement of cash flows.
Verified Answer
Retirement of bond payable, acquisition of treasury stock, and declaration of stock dividends are all outflows of cash and would be reported on the statement of cash flows as a use of cash.
Learning Objectives
- Efficiently discern and group cash inflows and outflows in the pertinent portions of the statement of cash flows.
Related questions
Cash Paid to Purchase Long-Term Investments Would Be Reported on ...
If Cash Dividends of $135,000 Were Paid During the Year ...
If $475,000 of Bonds Payable Are Sold at 101, $475,000 ...
Partin Corporation's Cash and Cash Equivalents Consist of Cash and ...
Tani Corporation's Most Recent Balance Sheet Appears Below: the ...