Use the following major cash flow activities to classify the activities listed below:
-Paid off long-term debt
A)Operating Activity, Source of Cash
B)Operating Activity, Use of Cash
C)Investing Activity, Source of Cash
D)Investing Activity, Use of Cash
E)Financing Activity, Source of Cash
F)Financing Activity, Use of Cash
G)Non-cash Investing & Financing Activity

Question

Quizplus · Accepted Answer

Paying off long-term debt is classified as a financing activity because it relates to the company's capital structure. It is considered a use of cash since cash is going out of the business to pay down the debt.

Use the Following Major Cash Flow Activities to Classify the Activities