To determine net cash provided by or used in financing activities,one must analyze
A)notes receivable and bonds payable.
B)the cash account.
C)contributed capital and retained earnings.
D)interest expense and dividend income.

Question

Quizplus · Accepted Answer

Net cash provided by or used in financing activities is determined by analyzing contributed capital and retained earnings, which are both sources of financing. Notes receivable and bonds payable are part of investing and financing activities, but not specifically related to net cash provided by or used in financing activities. The cash account is important in analyzing all types of cash flows, but it does not provide specific information on financing activities. Interest expense and dividend income are part of operating activities, not financing activities.

To Determine Net Cash Provided by or Used in Financing