When a company borrows $150 million during the year and also repays $120 million of debt, the company can disclose the $30 million net amount as excess of borrowings over repayments in the financing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

In the statement of cash flows, companies must disclose gross cash inflows and outflows separately, not net amounts, in the financing activities section.

When a Company Borrows $150 Million During the Year and Also