Items classified as financing activities on an entity's Statement of Cash Flows are usually associated with:
A)movements in non-current liabilities and equity
B)sales of goods and services by the entity
C)disposal of non-current assets
D)purchase on shares by the entity.

Question

Quizplus · Accepted Answer

Financing activities on an entity's Statement of Cash Flows typically involve transactions related to non-current liabilities (such as long-term debt) and equity (such as issuance of shares, dividends paid, etc.). Choices B and C are associated with operating and investing activities, respectively, while choice D is not a typical financing activity.

Items Classified as Financing Activities on an Entity's Statement of Cash