A decrease in long-term notes payable would mean:
A) an increase of cash flow from investing activities.
B) a decrease of cash flow from investing activities.
C) an increase of cash flow from financing activities.
D) a decrease of cash flow from financing activities.

Question

Quizplus · Accepted Answer

A decrease in long-term notes payable is considered a repayment of debt, which is classified under financing activities in the statement of cash flows. Therefore, it would result in a decrease of cash flow from financing activities.

A Decrease in Long-Term Notes Payable Would Mean