Question & Answer: Which of the following represents a cash inflow from financing activities?…..

Which of the following represents a cash inflow from financing activities?

Issuing stock in exchange for another company’s stock.

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Paying a bond’s face value at maturity.

Issuing long-term bonds at a discount.

Receiving interest on promissory notes.

Expert Answer

Issuing long term bonds at a discount- answer

issuing stock in exchange for another company’s stock is a non cash financing activity

payment of bonds face value at maturity is cash outflow

receiving interest on promissory note is an operating activity

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