Items classified as financing activities on an entity's statement of cash flows are usually associated with:
A) movements in non-current liabilities and equity.
B) sales of goods and services by the entity.
C) disposal of non-current assets.
D) purchase on shares by the entity.

Question

Quizplus · Accepted Answer

Financing activities typically involve movements in non-current liabilities (such as borrowing or repayment of long-term loans) and equity (such as issuing or repurchasing shares). Sales of goods and services (operating activities) and disposal of non-current assets (investing activities) are not classified as financing activities under the statement of cash flows.

Items Classified as Financing Activities on an Entity's Statement of Cash