Cash from financing activities includes ________.
A)all cash receipts and all cash disbursements for long-term business assets
B)all cash receipts and all cash disbursements for loans,contributions from owners,and distributions to owners
C)all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business
D)detailed estimates of the sources of cash and uses of cash

Question

Quizplus · Accepted Answer

Cash from financing activities includes all the cash transactions related to loans, contributions from owners, and distributions to owners. It does not include cash transactions related to routine sales and purchases made in the course of doing business (which are reported in cash from operating activities) or cash transactions related to long-term asset acquisitions (which are reported in cash from investing activities). The statement of cash flows provides detailed estimates of the sources and uses of cash, but cash from financing activities specifically refers to financing-related transactions. Therefore, the best choice is B.

Cash from Financing Activities Includes ________