Companies report cash flows associated with long term liability transactions in the investing section of the statement of cash flows, because the money was an investment in the future of the company.

Question

Quizplus · Accepted Answer

Companies report cash flows associated with long-term liability transactions in the financing section of the statement of cash flows, not the investing section. The investing section is used for cash flows related to acquiring or disposing of investments and long-term assets.

Companies Report Cash Flows Associated with Long Term Liability Transactions