In a Statement of Cash Flows, what is included in the financing section?
Statement of Cash Flows:
Statement of cash flows is a financial statement which reports about all the cash activities for the reporting year since cash is the most liquid asset. This FS is categorized into three main activities - Operating, Financing, and Investing.
Answer and Explanation:
The financing section is one of the three major sections in the statement of cash flows. This includes the borrowing (acquisition of cash) and repayment (usage of cash) of loans, short and long term. This also includes the acquisition and repurchase of stock (i.e., ordinary and preferred), as well as the payment of cash dividend. Note that the payment of interest expense from the loans are considered as operating expense.
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from Accounting 101: Financial AccountingChapter 12 / Lesson 5