Preparing the financing activities section of the statement of cash flows requires the analysis of non-current liability and equity accounts, as well as any short-term loans incurred for lending purposes rather than trade.

Question

Quizplus · Accepted Answer

The financing activities section of the statement of cash flows includes transactions involving non-current liabilities and equity accounts, such as issuing or repaying debt and equity, as well as short-term loans if they are for financing rather than operational purposes.

Preparing the Financing Activities Section of the Statement of Cash