Question

which of the following will be shown under the investing activities section of the statement of cash flows? a. purchased treasury stock for cash b. paid cash dividends to stockholders c. issued notes payable to purchase equipment d. loaned money to a third party

Explanation:

• Option A: Purchasing treasury stock is a financing activity (relates to equity transactions).
• Option B: Paying cash dividends is a financing activity (distributions to stockholders).
• Option C: Issuing notes payable to purchase equipment is a non - cash investing and financing activity, not shown in the investing activities section (as no cash is involved in the investing part here).
• Option D: Loaning money to a third party is an investing activity as it involves lending (a form of investing resources).

Answer:

D. loaned money to a third party