Scelta multipla
Which of the following best describes what financing activities involve on the statement of cash flows?
205
views
13. Statement of Cash Flows
Financing Activities
Scelta multipla
In the statement of cash flows, paying down debts such as credit card balances is classified as what type of activity?
A
Noncash investing and financing activity
B
Investing activity
C
Operating activity
D
Financing activity
Guida verificata passo dopo passo1
Understand the three main categories of cash flow activities: Operating, Investing, and Financing activities. Each category reflects different types of cash transactions in a business.
Recall that Operating activities include cash flows related to the primary revenue-generating activities, such as cash received from customers and cash paid to suppliers and employees.
Recognize that Investing activities involve cash flows related to the acquisition and disposal of long-term assets, like purchasing equipment or selling investments.
Identify that Financing activities include cash flows related to borrowing and repaying debt, issuing or repurchasing stock, and paying dividends.
Since paying down debts such as credit card balances involves repaying borrowed funds, classify this cash outflow under Financing activities.
Video correlati
Pratica correlata
