When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally affect:
A)Net income,current assets,and current liabilities.
B)Noncurrent assets.
C)Noncurrent liability and equity accounts.
D)Both noncurrent assets and noncurrent liabilities.
E)Equity accounts only.

Question

Quizplus · Accepted Answer

The cash flows from financing activities on a statement of cash flows generally affect noncurrent liability and equity accounts. Financing activities include any activity that results in a change in the company's equity or liabilities, such as issuing or repurchasing shares of stock, borrowing money, or paying dividends. These actions primarily affect noncurrent liability and equity accounts, such as long-term debt, deferred taxes, and equity investments.

When Analyzing the Changes on a Spreadsheet Used to Prepare