Operating activities include long-term borrowing and repaying cash from lenders, and cash investments by or dividends paid to stockholders.

a. True b. False

Question

Business

Gaven Boyd

23 May, 16:56

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments by or dividends paid to stockholders.

a. True b. False

+1

Answers (1)

Know the Answer?

Allison Harvey · Answer 1

False (B)

Explanation:

Long-term borrowing & repaying cash from lenders

Long-term borrowing will be classified under financing activities as it represents capital sourced from loan investors (e. g Bondholders, Banks e. t. c). As for repaying cash from lenders, capital repayment will be classified under financing activities while interest is recognized either under operating or financing activity.

Cash investments by or dividends paid to stockholders.

Cash investment by stockholders will be categorized under financing activities while dividend paid can either be categorized as operating or financing activity.

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments by or dividends paid to stockholders.a. True b. False

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments by or dividends paid to stockholders.

a. True b. False