Cash flows from acquiring and retiring long-term debt are classified as
A) operating activities.
B) investing activities.
C) financing activities.
D) purchasing activities.

Question

Quizplus · Accepted Answer

Acquiring and retiring long-term debt usually involves obtaining or repaying funds that are used to finance a company's long-term investments and operations. As such, these cash flows are classified as financing activities in the statement of cash flows.

Cash Flows from Acquiring and Retiring Long-Term Debt Are Classified