The financing activities section of a statement prepared using the direct method includes changes in ________.
A) Accounts Payable
B) Accounts Receivable
C) Merchandise Inventory
D) Long-term Notes Payable

Question

Quizplus · Accepted Answer

The financing activities section includes changes in long-term notes payable, which are a form of borrowing used to finance a company's operations. Changes in accounts payable, accounts receivable, and merchandise inventory are part of the operating activities section of the statement.

The Financing Activities Section of a Statement Prepared Using the Direct