Increases and decreases in the long-term liability accounts are reported on the statement of cash flows as:
A)investing activities.
B)operating activities.
C)financing activities.
D)both operating and investing activities.

Question

Quizplus · Accepted Answer

Increases and decreases in long-term liability accounts are considered financing activities, as they relate to the long-term financing of the company and its operations. Financing activities are reported in the financing section of the statement of cash flows.

Increases and Decreases in the Long-Term Liability Accounts Are Reported