Which of the following describes the financing activities section of the statement of cash flows?
A)It includes increases and decreases in long-term assets.
B)It includes cash inflows and outflows involved in long-term liabilities and equity.
C)It includes interest and dividend income and cash payments for interest expense.
D)It reports on activities that create revenue or expenses for the entity's business.

Question

Quizplus · Accepted Answer

The financing activities section specifically focuses on the cash flows related to long-term liabilities and equity, including issuing or repurchasing stock, paying dividends, and taking out or paying off loans. It does not include changes in long-term assets or revenue and expenses.

Which of the Following Describes the Financing Activities Section of the Statement