Which of the following items would be reported in the financing activities section on the statement of cash flows?
A)Cash paid for rent
B)Cash received from sale of inventory
C)Cash received from issuance of long-term debt
D)Cash paid for land

Question

Quizplus · Accepted Answer

Cash received from issuance of long-term debt is a financing activity as it represents an inflow of cash to the company from a source of financing. The other options, cash paid for rent and cash paid for land, would be reported in the operating activities and investing activities sections, respectively. Cash received from sale of inventory would be reported in the operating activities section.

Which of the Following Items Would Be Reported in the Financing