Lending cash to other companies would be reported in the financing activities section of the cash flow statement.

Question

Quizplus · Accepted Answer

Lending cash to other companies would be reported in the investing activities section of the cash flow statement, as it represents a cash outflow of funds from the company's investments. The financing activities section reports cash inflows and outflows related to debt and equity financing, such as issuing or repaying loans or stocks.

Lending Cash to Other Companies Would Be Reported in the Financing