Which of the following should be shown on a statement of cash flows under the financing activity section?
A) the purchase of a long-term investment in the common stock of another company
B) the payment of cash to retire a long-term note
C) the proceeds from the sale of a building
D) the issuance of a long-term note to acquire land

Question

Quizplus · Accepted Answer

Financing activities include transactions involving long-term liabilities and equity. The payment of cash to retire a long-term note is a financing activity as it involves the repayment of debt.

Which of the Following Should Be Shown on a Statement