Negative cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.
A)borrowing more than it is paying off
B)buying more long-term assets than it is selling
C)paying off more of its debts than it is borrowing
D)in poor financial health

Question

Quizplus · Accepted Answer

Negative cash flow from financing activities typically indicates that a company is paying off more of its debts than it is borrowing, not necessarily that it is in poor financial health.

Negative Cash Flow from Financing Activities on the Statement of Cash