Question
The
section of a cash flow statement details its activities that produce and use cash in the areas of long-term debt and equity.
section of a cash flow statement details its activities that produce and use cash in the areas of long-term debt and equity.
Answers
GPT-4o mini
The section of a cash flow statement that details activities producing and using cash in the areas of long-term debt and equity is called the **financing activities section**.
This section typically includes:
1. **Cash Inflows**:
- Issuance of stocks (equity financing)
- Issuance of bonds or taking on loans (debt financing)
- Proceeds from other long-term borrowings
2. **Cash Outflows**:
- Repayment of long-term debt
- Dividend payments to shareholders
- Repurchase of company stock
The financing activities section provides insight into how a company raises capital and its repayment practices, helping stakeholders assess the company’s financial health and long-term sustainability.
This section typically includes:
1. **Cash Inflows**:
- Issuance of stocks (equity financing)
- Issuance of bonds or taking on loans (debt financing)
- Proceeds from other long-term borrowings
2. **Cash Outflows**:
- Repayment of long-term debt
- Dividend payments to shareholders
- Repurchase of company stock
The financing activities section provides insight into how a company raises capital and its repayment practices, helping stakeholders assess the company’s financial health and long-term sustainability.