Question

The financing activities section of the statement of cash flows includes paying dividends and paying off loans. True O False
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer -

The financing activities section of the statement of cash flows includes paying dividends and paying off loans. - True

Explanation:

The statement of cash flows consists of three sections - The operating activities section, the Investing activities section, and the Financing activities section.

The financing activities section of the statement of cash flows includes cash inflow from and outflow to creditors or investors, banks, and stockholders. In the financing activities section - issuing stock, issuing long-term liabilities such as bonds, taking loans from banks, short-term borrowings are the few examples of cash inflow activities. And paying dividends to stockholders, payment to creditors, paying off loans, the redemption of debt such as bonds are the examples of cash outflow activities.

Add a comment
Know the answer?
Add Answer to:
The financing activities section of the statement of cash flows includes paying dividends and paying off...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The cash flows from financing activities is the section of the statement of cash flows where...

    The cash flows from financing activities is the section of the statement of cash flows where cash transactions for the acquisition and sale of permanent assets are reported Select one: True False

  • QUESTION 16 The financing activities section of the statement of cash flows includes activities that affect...

    QUESTION 16 The financing activities section of the statement of cash flows includes activities that affect current assets and current liabilities. True False QUESTION 17 The statement of cash flows helps users evaluate the company's earnings per share evaluate management decisions predict future net income predict the growth of a company's assets Click Save and Submit to save and submit. Click Save All Answers to save all answers. 3 6 39 10 11 12 13 13 16 17 QUESTIONS Obligations...

  • correct answer Date: 1160 S 19 TRUE/FALSE. Write T if the statement is true and F if the statement is false, 1) T...

    correct answer Date: 1160 S 19 TRUE/FALSE. Write T if the statement is true and F if the statement is false, 1) The statement of cash flows reflects cash flows on a particular date 2) The statement of cash flows reports why cash increased or decreased during the period. 3) Investors and management use the statement of cash flows to evaluate a firm's profitability 4) For purposes of the statement of cash flows. "cash includes cash on hand, cash in...

  • On the statement of cash flows, the cash flows from financing activities section would include a....

    On the statement of cash flows, the cash flows from financing activities section would include a. receipts from the sale of investments b. payments for the acquisition of investments c. receipts from a note receivable d. receipts from the issuance of capital stock ation would include all

  • 3. Operating, Investing, and financing activities and cash flows The statement of cash flows reports a...

    3. Operating, Investing, and financing activities and cash flows The statement of cash flows reports a company's cash inflows and outflows for a given accounting period by categorizing the company's sources and uses of cash as either operating, investing, or financing activities. Determine whether the activities described in the following table should be categorized as operating, investing, or financing activities in the statement of cash flows. activities Investing activities Financing activities Alexander Co. purchased a factory for $920,000. Doran Industries...

  • the statement of cash flows has an investing and financing activities section. What is the difference...

    the statement of cash flows has an investing and financing activities section. What is the difference between these two sections? Can you provide an example of a financing activity or an investing activity?

  • Which section of the statement of cash flows represents cash generated internally? O Cash Flow from...

    Which section of the statement of cash flows represents cash generated internally? O Cash Flow from Operating Activities O Cash Flow from Investing Activities O Cash Flow from Financing Activities O All of the above represent internally generated cash. O None of the above represent cash that is generated internally. TRUE or FALSE When using the indirect approach to constructing a Statement of Cash Flows (this is the only approach taught in Fl 3300), an increase in Accounts payable from...

  • Financing Activities on the Statement of Cash Flows Takaki Inc. reported net income of $53,000 for...

    Financing Activities on the Statement of Cash Flows Takaki Inc. reported net income of $53,000 for 20Y7. The liability and equity accounts from the company's comparative balance sheet are as follows: Dec. 31, 2047 Dec. 31, 2016 Accounts payable $31,900 $28,400 Dividends payable 5,000 3,000 Common stock, $5 par value 80,000 75,000 Paid-in capital in excess of par-common stock 37,000 30,000 Retained earnings 130,600 81,600 During the year, the company declared dividends of $4,000 and issued 1,000 shares of common...

  • Cash paid for interest on a loan is classified as a cash flow from financing activities...

    Cash paid for interest on a loan is classified as a cash flow from financing activities in a statement of cash flows. Select one: True False Two different methods of determining and presenting the net cash flows from operating activities are the indirect method and the reconciliation method. Select one: True False The operating activities section of the statement of cash flows shows a reconciliation of net income to the net cash provided by operating activities amount under the direct...

  • |OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is...

    |OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is a useful report that discloses all movements during the period. Classification of cash flows into operating, and financing activities provides insight into where cash came from and what it was spent on. It is important that cash flows from activities is positive, as it indicates that sufficient cash was received from business operations to cover ongoing business outflows. A significant cash under operating activities...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT