Which of the following is correct?
A)Repayments of principal and interest reduce financing activities cash flows.
B)Purchase of common stock shares for treasury is a cash outflow connected to investing activities.
C)If a company borrows $450 million in long-term notes and repays $380 million of long-term notes, these items must both be disclosed separately and not netted against each other in the financing section of the cash flow statement.
D)Issuing common stock in exchange for the purchase of a building creates both a financing activity and investing activity cash flow.

Question

Quizplus · Accepted Answer

In the cash flow statement, borrowing and repayment of long-term notes are financing activities and must be disclosed separately, not netted.

Which of the Following Is Correct