The

Question

section of a cash flow statement details its activities that produce and use cash in the areas of long-term debt and equity.

Answer 1

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.