Which statement about the statement of cash flows is FALSE?
A)Operating activities should be the company's main source of cash.
B)Purchases and sales of long-term assets are financing cash flows.
C)The payment of a dividend is a financing cash flow.
D)The payment of a note payable is a financing activity.

Question

Quizplus · Accepted Answer

Purchases and sales of long-term assets are investing cash flows, not financing cash flows. Financing activities include obtaining or repaying loans, issuing or buying back shares of stock, and paying dividends.

Which Statement About the Statement of Cash Flows Is FALSE