Cash flows from financing activities would be reduced by which of the following?
A) Purchase of inventory
B) Repayment of long-term debt
C) Purchase of machinery
D) Payment of interest

Question

Quizplus · Accepted Answer

Financing activities include activities related to borrowing money or issuing stock. Repayment of long-term debt is a financing activity and reduces cash flows from financing activities. Purchase of inventory, purchase of machinery, and payment of interest are not financing activities but are operating activities.

Cash Flows from Financing Activities Would Be Reduced by Which