Which of the following statements is correct with regards to the statement of cash flows?
A) Financing activities include net cash from the sale and purchase of the entity's assets.
B) Investing activities include investments made by the owners of the entity.
C) Financing activities include amounts borrowed from financial institutions.
D) Investing activities include the cash received from customers.

Question

Quizplus · Accepted Answer

Financing activities include transactions involving borrowing and repaying funds, issuing or buying back stocks, and paying dividends. These transactions are typically with financial institutions, shareholders, or creditors, and do not involve the sale or purchase of the entity's assets. Therefore, statement C is the correct option. Statements A, B, and D are incorrect as they include activities that fall under other sections of the statement of cash flows.

Which of the Following Statements Is Correct with Regards to the Statement