Which of the following is incorrect regarding the financing activities section of a statement of cash flows?
A) Increases in contributed capital accounts suggest cash inflows occurred from issuing equity instruments.
B) Decreases in long-term debt accounts balances suggest cash outflows occurred for payment of debt.
C) Increases in short-term notes payablenotes payable accounts suggest cash outflows occurred from issuing notes or bonds.
D) Decreases in retained earningsretained earnings suggest cash outflows occurred to pay dividends.

Question

Quizplus · Accepted Answer

In general,increases in short-term notes payable or long-term debt balances suggest cash inflows occurred from issuing debt instruments (notes or bonds)and decreases in short-term notes payable or long-term debt balances suggest cash outflows occurred for payment of debt (notes or bonds).

Which of the Following Is Incorrect Regarding the Financing Activities