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DaniilM [7]
3 years ago
9

Which of the following describes the financing activities section of the statement of cash flows?A) It reports on activities tha

t create revenue or expenses for the entity's business.B) It includes interest and dividend income and cash payments for interest expense.C) It includes cash inflows and outflows related to long-term liabilities and equity.D) It includes increases and decreases in long-term assets.
Business
1 answer:
olga_2 [115]3 years ago
5 0

Answer:

C) It includes cash inflows and outflows related to long-term liabilities and equity.

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

In the above option, option C is a match with the meaning of the financing activities.  

Hence, all other options are incorrect.

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