Financing activities on the statement of cash flows affect the long-term liability and equity accounts.

Question

Quizplus · Accepted Answer

Financing activities involve activities related to long-term liability and equity accounts, such as borrowing money through loans, issuing shares of stock, and paying dividends. Therefore, these activities have an impact on the long-term liability and equity accounts which are reflected on the statement of cash flows.

Financing Activities on the Statement of Cash Flows Affect the Long-Term