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Which one of the following transactions should not be classified as a financing activity in the statement of cash flows?

A. Issuance of common stock.

B. Purchase of treasury stock.

C. Payment of dividends.

D. Income tax refund.

Accounting Auditing Banking
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Question added by Deleted user
Date Posted: 2015/02/27
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Imran Adwani
by Imran Adwani , Head of Internal Audit , Abdulla Bin Zayed Investment Group

Financing activity is basically related to capital structure of the company. Hence, option "d" should not be classified as such since it is an operating activity for the business.

Parthasarathy Madabhooshi Rajagopalan
by Parthasarathy Madabhooshi Rajagopalan , Finance Manager , Hussam Technology Company LLC

Option D - Income tax refunds classified under Operating activity

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