Question

Which of the following would be considered a cash-flow item from a "financing" activity?

• A. A cash outflow to the government for taxes
• B. A cash outflow to repurchase the firm's own common stock
• C. A cash outflow to lenders as interest
• D. A cash outflow to purchase bonds issued by another company

Answer 1

The correct option is B

A cash outflow to repurchase the firm's own common stock

A cash outflow for payment of interest would be considered a cash-flow item from a "financing" activity