The financing section of the statement of cash flows involves transactions relating to the Equity accounts and the Long-Term Liability accounts.

Question

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The financing section of the statement of cash flows includes transactions related to the issuance or retirement of stock, payment of dividends, and borrowing or repayment of long-term debt. These transactions affect Equity accounts (such as Common Stock and Retained Earnings) and Long-Term Liability accounts (such as Bonds Payable and Notes Payable).

The Financing Section of the Statement of Cash Flows Involves