Which of the following should be shown on a statement of cash flows under the financing activities section? a. the proceeds from the sale of a building b. the purchase of a long-term investment in the common stock of another company c. the issuance of a long-term note to acquire land d. the payment of cash to retire a long-term note

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Business

Mara Branch

3 November, 23:23

Which of the following should be shown on a statement of cash flows under the financing activities section? a. the proceeds from the sale of a building b. the purchase of a long-term investment in the common stock of another company c. the issuance of a long-term note to acquire land d. the payment of cash to retire a long-term note

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Russell Hooper · Answer 1

the payment of cash to retire a long-term note.

Explanation:

Cash flow statement shows cash flows from operations, investment, and financing activities.

Financing activities are the various transactions a business undertakes that will affect long term liabilities and equity of a business. It is how a company funds it's operations and expansion externally.

Borrowing and repaying of long term loans is a financing activity. So payment of cash to retire a long-term note will appear in the cash flow statement under financing activity.