For the past two years, Monroe Corporation's statement of cash flows has shown net cash provided by financing activities.Which of the following choices could explain this result?

Question

Quizplus · Accepted Answer

The issuance of long-term debt would result in an inflow of cash, which would be reflected in the financing section of the statement of cash flows as a source of financing for the company. Option A is related to operating activities, B is related to investing activities, and C is related to investing or operating activities, but none of them would explain the net cash provided by financing activities.

For the Past Two Years, Monroe Corporation's Statement of Cash