On the statement of cash flows, which of the following section includes activities that increase and decrease long-term liabilities and owners' equity?
A)Operating section
B)Financing section
C)Investing section
D)None of the above

Question

Quizplus · Accepted Answer

The financing section of the statement of cash flows includes activities that increase and decrease long-term liabilities and owners' equity, such as issuing or repurchasing stocks, paying dividends, and borrowing or repaying loans. The operating section includes activities related to revenue and expenses, while the investing section includes activities related to the purchase and sale of long-term assets. None of these sections directly affect long-term liabilities and owners' equity.

On the Statement of Cash Flows, Which of the Following