Activities that affect long-term liabilities and stockholders' equity are:
A)investing activities.
B)operating activities.
C)financing activities.
D)noncash investing and financing activities.

Question

Quizplus · Accepted Answer

Long-term liabilities and stockholders' equity are primarily affected by financing activities, such as borrowing or repaying debt, issuing or buying back stocks, and paying dividends to shareholders. Operating activities may also have an impact on these items, but to a lesser extent. Investing activities and noncash investing and financing activities are more related to changes in assets and their financing, rather than liabilities and equity.

Activities That Affect Long-Term Liabilities and Stockholders' Equity Are