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Which of the following would be classified as a financing activity in the cash flow statement?

  1. A Payment of dividends to shareholders
  2. B Purchase of inventory
  3. C Collection from trade receivables
  4. D Sale of an old delivery van
Answer

Payment of dividends to shareholders

Financing activities relate to changes in equity and borrowings. Selling a van is investing, and inventory and receivables are operating.

All Accounting MCQs

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