객관식
In the statement of cash flows, paying down debts such as credit card balances is classified as what type of activity?
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13. Statement of Cash Flows
Financing Activities
객관식
Which of the following items would NOT be classified as a financing activity on the statement of cash flows?
A
Issuance of common stock
B
Purchase of equipment
C
Payment of dividends to shareholders
D
Repayment of long-term debt
검증된 단계별 안내1
Understand the classification of activities in the statement of cash flows: Operating, Investing, and Financing. Financing activities involve transactions related to raising capital or repaying capital, such as issuing stock, paying dividends, or repaying debt.
Review the options provided in the problem: Issuance of common stock, Purchase of equipment, Payment of dividends to shareholders, and Repayment of long-term debt.
Identify the nature of each activity: Issuance of common stock is a financing activity because it involves raising capital. Payment of dividends to shareholders is a financing activity because it involves returning capital to investors. Repayment of long-term debt is a financing activity because it involves settling obligations related to borrowed funds.
Analyze the 'Purchase of equipment' option: Purchasing equipment is classified as an investing activity because it involves acquiring long-term assets for the business, not raising or repaying capital.
Conclude that the item NOT classified as a financing activity is 'Purchase of equipment,' as it falls under investing activities in the statement of cash flows.
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