Question

Which of the following is not a cash flow from financing activities?

Select one:

A. Cash received from issuance of preferred stock

B. Cash paid to settle accounts payable

C. Cash paid as dividends on common stock

D. Cash received from issuance of bonds payable

E. None of the above

Answer 1

The correct answer is B. Cash paid to settle accounts payable

Note :

The  cash flow from financing activities involves the activities relating to the raising and repayment of funds.

Hence, the Cash received from issuance of preferred stock and the Cash received from issuance of bonds payable is recorded in the financing activity. Further, Cash paid as dividends on common stock is included in the financing activities.