A decreasing long-term liability account is presented on the statement of cash flows as
A)a decrease in cash in the Financing Activities category.
B)a decrease in cash in the Investing Activities category.
C)an increase in cash in the Operating Activities category.
D)an increase in cash in the Financing Activities category.

Question

Quizplus · Accepted Answer

When a long-term liability account decreases, it indicates that the company has repaid some of its debt, which is a cash outflow in the Financing Activities section of the cash flow statement.

A Decreasing Long-Term Liability Account Is Presented on the Statement