Question

which of the following is a cash outflow for a financing activity on the statement of cash flows?
a. loans made to another party
b. purchase of long - term investments, such as the stock of another company
c. purchase of treasury stock
d. purchase of land

Explanation:

To determine the cash outflow for financing activities, we analyze each option:

• Option A: Loans made to another party are investing activities (not financing).
• Option B: Purchase of long - term investments is an investing activity.
• Option C: Treasury stock is related to a company's equity (a financing activity). Purchasing treasury stock involves a cash outflow for financing.
• Option D: Purchase of land is an investing activity.

Answer:

C. purchase of treasury stock