Question

Which of the following items would appear in the financing activities section of the cash flow statement?

-Cash outflow for the purchase of supplies.
-Cash inflow from sales revenue.
-Cash inflow from issuance of common stock
-Cash outflow for the purchase of computer equipment.

Answer 1

Cash outflow for supplies, cash inflow from issuance of common stock, and cash outflow for computer equipment would appear in the financing activities section of the cash flow statement.

Step-by-step explanation:

In the financing activities section of the cash flow statement, the following items would appear:

• Cash outflow for the purchase of supplies: This represents the payment of cash for purchasing supplies, which is a financing activity.
• Cash inflow from issuance of common stock: This represents the receipt of cash from selling shares of common stock, which is a financing activity.
• Cash outflow for the purchase of computer equipment: This represents the payment of cash for acquiring computer equipment, which is a financing activity.

Cash inflow from sales revenue would not appear in the financing activities section, as it is related to operating activities.

Cash outflow for supplies, cash inflow from issuance of common stock, and cash outflow for computer equipment would appear in the financing activities section of the cash flow statement.