On the statement of cash flows, which of the following activities are included in the financing activities section?
A)Activities that increase or decrease long-term assets
B)Activities that obtain the cash needed to launch and sustain the business
C)Activities that create revenue or expenses in the entity's major line of business
D)None of the above

Question

Quizplus · Accepted Answer

Financing activities include activities that obtain the cash needed to launch and sustain the business, such as issuing shares, borrowing from banks, or repaying debts. A refers to investing activities, and C refers to operating activities. Therefore, only B is included in the financing activities section.

On the Statement of Cash Flows, Which of the Following