Which of the following statements is false?
A)Investing cash flows include the cash flows associated with lending money to others.
B)Financing cash flows include the cash flows associated with issuing stock and paying dividends.
C)Financing cash flows include the cash flows associated with borrowing and repaying debt excluding short-term bank loans.
D)Investing cash flows include the cash flows associated with buying and selling noncurrent assets.

Question

Quizplus · Accepted Answer

Financing cash flows indeed include the cash flows associated with borrowing and repaying debt, but this category does not exclude short-term bank loans. Short-term borrowings, like bank loans, are also considered under financing activities in cash flow statements.

Which of the Following Statements Is False