9. Cash payments for insurance Financing activities include transactions that affect long−term liabilities and stockholder's equity...

9. Cash payments for insurance Financing activities include transactions that affect long−term liabilities and stockholder's equity on the balance sheet.

T/F

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Expert Solution

True.

Financing activities are those which affect the capital structure of the entity.

So the transactions which affect stock holders equity such as issue of common shares for cash, purchase of treasury stock for cash etc will be shown as financing activities of the cash flow statement.

Issue of long term debt is also a financing activity.

ekkarill92 answered 1 year ago

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