On the Statement of Cash Flows,which of the following are considered financing activities?
I.increase in long-term debt
II.decrease in accounts payable
III.interest paid
IV.dividends paid
A)I and IV only
B)III and IV only
C)II and III only
D)I, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

I. Increase in long-term debt is a financing activity as it involves borrowing money to finance the company's operations.
II. Decrease in accounts payable is not a financing activity. It is a change in operating activities that results from a decrease in the amount owed to suppliers and creditors.
III. Interest paid is not a financing activity. It is a cash outflow related to operating activities as companies pay interest on loans and other borrowings directly related to their operations.
IV. Dividends paid are a financing activity as it involves distributing a portion of the company's profits to shareholders.

On the Statement of Cash Flows,which of the Following Are