Question

Which of the following should be shown on a statement of cash flows under the financing activity section? Group of answer choices cash from the sale of Land cash from sale of common stock of another company the proceeds from the sale of a building a decrease in accounts payable

Answer 1

Answer: a decrease in accounts payable

             

Explanation: Financing practices are long-term obligations and equity sales or market incidents. In other terms, financing practices are arrangements with shareholders or creditors that are used to finance business activities or developments.

Financing activities illustrate how an outside agency is financing its programs and enhancements. There is no internal funding involved. Hence from the above we can conclude that the correct option is D.