When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally affect:
A)Net income,current assets,and current liabilities.
B)Noncurrent assets.
C)Noncurrent liabilities and equity accounts.
D)Both noncurrent assets and noncurrent liabilities.
E)Equity accounts only.

Question

Quizplus · Accepted Answer

Cash flows from financing activities generally involve changes in noncurrent liabilities and equity accounts, such as issuances of long-term debt or stock options, repayment of debt, and payment of dividends. The other options listed in the answer choices are generally associated with cash flows from operating activities (net income, current assets, and current liabilities) or cash flows from investing activities (noncurrent assets).

When Analyzing the Changes on a Spreadsheet Used to Prepare