Which of the following is an example of a cash flow from an investing activity? Group of answer choices receipt of cash from the sale of equipment receipt of cash from the sale of stock payment of cash for dividends payment of cash to acquire treasury stock

Which of the following is an example of a cash flow from an investing activity? Group of answer choices receipt of cash from the sale of equipment receipt of cash from the sale of stock payment of cash for dividends payment of cash to acquire treasury stock

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following is an example of a cash flow from an investing activity?

Group of answer choices

receipt of cash from the sale of equipment

receipt of cash from the sale of stock

payment of cash for dividends

payment of cash to acquire treasury stock

Definition Definition Stock repurchased from the stockholders by the company that once issued it. The repurchase of the stock reduces the stockholder's equity balance on the balance sheet. Treasury stocks are an important constituent of stockholder's equity but do not carry any voting rights.

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