We can find most financing activities by examining changes in long-term liabilities and stockholders' equity accounts.

Question

Quizplus · Accepted Answer

Financing activities involve changes in long-term liabilities (such as issuing or repaying bonds) and stockholders' equity (such as issuing or repurchasing common stock or paying dividends). Therefore, examining changes in these accounts can help identify financing activities.

We Can Find Most Financing Activities by Examining Changes in Long-Term