On the statement of cash flows,financing activities involve:
A)purchasing investments.
B)acquiring long-term assets.
C)lending money.
D)borrowing by signing a long-term note.

Question

Quizplus · Accepted Answer

Financing activities on the statement of cash flows involve borrowing and repaying debt, issuing and repurchasing stock, and paying dividends. Option D, borrowing by signing a long-term note, is the only choice that falls under financing activities. Option A, purchasing investments, is an example of investing activities. Option B, acquiring long-term assets, is also an example of investing activities. Option C, lending money, falls under operating activities if the company is in the business of lending money, but if the company is not in that type of business, it would be considered an investing activity.

On the Statement of Cash Flows,financing Activities Involve