Which of the following is incorrect regarding the financing activities section of a statement of cash flows?
A)Increases in contributed capital accounts suggest cash inflows occurred from issuing equity instruments.
B)Decreases in long-term debt accounts suggest cash outflows occurred for payment of debt.
C)Increases in short-term notes payable accounts suggest cash outflows occurred from issuing notes or bonds.
D)Decreases in retained earnings suggest cash outflows occurred to pay dividends.

Question

Quizplus · Accepted Answer

The statement "Increases in short-term notes payable accounts suggest cash outflows occurred from issuing notes or bonds" is incorrect. Increases in short-term notes payable accounts actually suggest cash inflows occurred from borrowing money through the issuance of notes or bonds.

Which of the Following Is Incorrect Regarding the Financing Activities