Which of the following situations affects the statement of cash flows?
A) decreases in long-term borrowings are an outflow of cash
B) decreases in long-term borrowings increase cash
C) increases in long-term borrowings are an investing activity
D) changes in long-term borrowings are an operating activity

Question

Quizplus · Accepted Answer

Decreases in long-term borrowings represent a repayment of debt, which is an outflow of cash and is reported in the financing activities section of the statement of cash flows.

Which of the Following Situations Affects the Statement of Cash