Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets?
A)the financing section
B)the operating section
C)the investing section
D)the non-cash investing and financing section

Question

Quizplus · Accepted Answer

The investing section of the statement of cash flows includes activities pertaining to the purchase and sale of long-term assets such as property, plant, and equipment, and investments in securities. This section reports the cash inflows and outflows related to these activities, which can increase or decrease long-term assets. The financing section reports activities related to obtaining or repaying long-term financing such as issuance of bonds or payment of dividends to shareholders. The operating section deals with the cash inflows and outflows related to regular business operations, while the non-cash investing and financing section reports non-cash transactions such as issuing shares for non-cash assets.

Which of the Following Sections of the Statement of Cash