When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally are affected by:

A) Net income,current assets,and current liabilities.
B) Noncurrent assets.
C) Noncurrent liability and equity accounts.
D) Both noncurrent assets and noncurrent liabilities.
E) Equity accounts only.

Question

Kanchi Sachin Parmar · Accepted Answer

Final Answer : C, Explanation :  Cash flows from financing activities include transactions with noncurrent liability and equity accounts, such as issuing or repurchasing bonds or shares. Changes in net income, current assets, and current liabilities primarily affect cash flows from operating activities, while changes in noncurrent assets primarily affect cash flows from investing activities.

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