Question

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

Answer 1

Answer:

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.