In general, financing activities as used in the statement of cash flows refer to
A) liability and owners' equity items and include (a) obtaining cash from creditors and repaying the amounts borrowed and (b) obtaining capital from owners and providing them with a return on, and a return of, their investment.
B) transactions involving long-term assets and include (a) making and collecting loans and (b) acquiring and disposing of investments and productive long-lived assets.
C) only debt transactions that result from long-term borrowings from financial institutions.
D) the cash effect of transactions that enter into the determination of net income and, thus, help finance the operations of the business through the generation of cash.

Question

Quizplus · Accepted Answer

Financing activities in the statement of cash flows include transactions related to liability and owners' equity items, such as obtaining and repaying debt, and transactions with owners, like receiving capital and providing returns.

In General, Financing Activities as Used in the Statement of Cash