Which of the following describes the financing activities as shown in the statement of cash flows?
A) Includes increases and decreases in long-term assets
B) Includes transactions affecting the capitalization of the business
C) Includes transactions that primarily impact current assets and current liabilities
D) Shows the beginning and ending balance of cash

Question

Quizplus · Accepted Answer

Financing activities include transactions that affect the capitalization of the business, such as issuing or repurchasing stock, issuing or retiring debt, dividends paid, and other transactions related to long-term liabilities and equity. Option A is describing investing activities, option C is describing operating activities, and option D is describing the beginning and ending balances of cash, which are shown in the statement of cash flows but not specifically in the financing section.

Which of the Following Describes the Financing Activities as Shown