The ________ activities section from the statement of cash flows would include the payment of a long-term mortgage payable with cash.
A)investing
B)financing
C)operating
D)None of the above

Question

Quizplus · Accepted Answer

Payment of long-term debt is typically recorded in the financing activities section of the statement of cash flows, which includes transactions related to the company's capital structure, such as borrowing or repaying debt, issuing or buying back stock, and paying dividends. The investing activities section deals with the purchase or sale of long-term assets like property, plant, and equipment, as well as investments in other companies. The operating activities section covers the company's primary business activities, such as buying and selling inventory, collecting receivables, and paying expenses. None of these sections would be the appropriate place to record the payment of a long-term mortgage payable.

The ________ Activities Section from the Statement of Cash Flows