What would be a cash outflow shown in the financing section?

Interest on long-term debt

Issuing stock for cash

Repayment of long-term debt

Dividend income

1 answer

In the financing section of the cash flow statement, a cash outflow would be the repayment of long-term debt.

This is because it represents cash leaving the company to pay off borrowed funds.

The other options are either cash inflows (like issuing stock for cash) or do not fall under the financing activities (like interest on long-term debt, which is typically classified as an operating activity, and dividend income).