Which of the following statement is incorrect regarding the investing activities section of the statement of cash flows?
A) Investing activities deal with long-term liabilities (debt)and equity accounts.
B) Increases in long-term asset balances suggest cash outflows to purchase assets.
C) Decreases in long term asset balances suggest cash inflows from selling assets.
D) Investing activities involve cash purchases and cash disposals of long-term assets.

Question

Quizplus · Accepted Answer

The information necessary to identify cash inflows and outflows from investing activities is obtained by reconciling changes in a company's long-term assets.The information necessary to identify cash inflows and outflows from financing activities is obtained by reconciling changes in short-term notes payable,long-term liabilities,and stockholders' equity.

Which of the Following Statement Is Incorrect Regarding the Investing