Which of the following describes the financing activities as shown in the cash flow statement?
A) includes increases and decreases in long-term assets
B) includes transactions affecting the capitalization of the business
C) includes transactions that primarily impact current assets and current liabilities
D) shows the beginning and ending balance of cash

Question

Quizplus · Accepted Answer

Financing activities include transactions that affect the long-term capitalization of the business, such as issuing or repurchasing stock and paying dividends. Choices A and C describe operating activities, while choice D describes the beginning and ending balances of the cash statement, which is shown in the beginning of the cash flow statement, but does not describe the financing activities itself.

Which of the Following Describes the Financing Activities as Shown