Increases and Decreases in the Long- Term Liability Accounts Are

question 17

Multiple Choice

Increases and decreases in the long- term liability accounts are reported on the statement of cash flows as:

• A)financing activities.
• B)investing activities.
• C)operating activities.
• D)both operating and investing activities.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a claim on its profits.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities.

Ownership

The legal right or title to possess and use property, whether tangible or intangible.

Affiliated Directors

Members of a company's board of directors who have a close relationship to or are employed by the company, potentially influencing their decisions.