Use the following information for questions
Harlowe Corp, a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows.
-Retirement of non-current debt with cash:
A)Operating activities section
B)Investing activities section
C)Financing activities section
D)Does not represent a cash flow

Question

Use the following information for questions 
Harlowe Corp, a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows.
-Retirement of non-current debt with cash:
A)Operating activities section
B)Investing activities section
C)Financing activities section
D)Does not represent a cash flow

Quizplus · Accepted Answer

Retirement of non-current debt with cash is considered a financing activity as it involves a change in the long-term liabilities on the balance sheet. It represents a cash inflow from financing activities. Therefore, it should be classified in the financing activities section of the statement of cash flows.

Use the Following Information for Questions