Which of the following describes the financing activities section of the statement of cash flows?
A) It includes increases and decreases in long-term assets.
B) It includes cash inflows and outflows related to long-term liabilities and equity.
C) It includes interest and dividend income and cash payments for interest expense.
D) It reports on activities that create revenue or expenses for the entity's business.

Question

Quizplus · Accepted Answer

The financing activities section of the statement of cash flows reports on cash inflows and outflows related to long-term liabilities and equity, such as issuing or repurchasing stock, paying dividends, and borrowing or repaying loans. It does not include changes in long-term assets or interest and dividend income or payments. The section mainly reflects the company's financing activities and the sources of capital it uses to operate or develop its business further.

Which of the Following Describes the Financing Activities Section of the Statement