Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

13. Statement of Cash Flows

Financing Activities

Financial Accounting

13. Statement of Cash Flows

Financing Activities

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Multiple Choice

Each of the following are classified as a financing activity except:

Purchasing equipment for cash

Borrowing money from a bank

Paying dividends to shareholders

Issuing common stock

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Verified step by step guidance

Step 1: Understand the concept of financing activities. Financing activities are transactions that involve raising capital or returning capital to investors. These activities typically include borrowing money, issuing stock, and paying dividends.

Step 2: Review the options provided in the problem. Identify which activities are related to financing and which are not. The options are: Purchasing equipment for cash, Borrowing money from a bank, Paying dividends to shareholders, and Issuing common stock.

Step 3: Analyze 'Purchasing equipment for cash.' This activity is classified as an investing activity because it involves acquiring long-term assets, not raising or returning capital.

Step 4: Analyze the other options: Borrowing money from a bank is a financing activity because it involves raising capital. Paying dividends to shareholders is a financing activity because it involves returning capital to investors. Issuing common stock is a financing activity because it involves raising capital from shareholders.

Step 5: Conclude that 'Purchasing equipment for cash' is the correct answer because it is classified as an investing activity, not a financing activity.