Which of the Following Sections of the Statement of Cash

question 71

Multiple Choice

Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets?

• A)the financing section
• B)the operating section
• C)the investing section
• D)the non-cash investing and financing section

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Definitions:

Voucher System

A control mechanism in accounting where vouchers are created for all transactions that involve the payment of cash or transfer of funds.

Cash Payments

Transactions involving the transfer of cash from one party to another, often related to expenses or purchases.

Voucher System

An accounting system used to control and monitor disbursements by ensuring that all cash disbursements are properly authorized and documented.

Liabilities

Obligations that a company owes to others, including loans, accounts payable, mortgages, and other debts.