In preparing the Cash Flows from Financing Activities section of the statement of cash flows, which types of accounts are analyzed for changes? a. Long-term liabilities and stockholders' equity b. All liabilities and stockholders' equity c. Current liabilities and stockholders' equity d. Long-term assets

Question

Business

Toby

17 June, 13:35

In preparing the Cash Flows from Financing Activities section of the statement of cash flows, which types of accounts are analyzed for changes? a. Long-term liabilities and stockholders' equity b. All liabilities and stockholders' equity c. Current liabilities and stockholders' equity d. Long-term assets

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Answers (1)

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Janelle Solis · Answer 1

The correct answer to the following question is option A) long term liabilities and stockholders equity.

Explanation:

Cash flow statement is a financial statement, which keeps a record of cash inflow and outflow, which results from the various activities of the company. The analysis of cash flow statement can be break down in 3 parts - Operating, Investing and Financing activities.

From the financing activities in a cash flow statement, the main focus is on how the company would raise financing or capital and how it is going to pay back its investors through the capital markets. In this section of a cash flow statement, one can measure the cash flow between a company and its creditors and owners.