Cash flows from financing activities might include:

Question

Quizplus · Accepted Answer

Cash flows from financing activities refer to cash inflows or outflows resulting from transactions with lenders or investors. An increase in notes payable is an example of cash inflow from financing activities as the company has borrowed money. The increase in accounts payable is not a financing activity, as it is a liability to suppliers and not lenders or investors. Depreciation is a non-cash expense and does not impact cash flows from financing activities. Therefore, the correct answer is A.

Cash Flows from Financing Activities Might Include