Which of the Following Is Incorrect Regarding the Financing Activities

question 37

Multiple Choice

Which of the following is incorrect regarding the financing activities section of a statement of cash flows?

• A) Increases in Contributed Capital accounts suggest cash inflows occurred from issuing equity instruments.
• B) Decreases in Long-Term Debt accounts suggest cash outflows occurred for payment of debt.
• C) Increases in Short-Term Notes Payable accounts suggest cash outflows occurred from issuing notes or bonds.
• D) Decreases in retained earnings suggest cash outflows occurred to pay dividends.

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