00:01
Okay, so it says, which of the following sources and uses of cash would be classified as cash flows from financing activities activities in the statement of cash flow of a for -profit organization.
00:57
And it wants you to select one.
00:59
Would it be a, principal payment on a bank loan? so principal principal payment on a bank loan, b, dividend payments to shareholders, or c, receipt of a bank loan, d, all of the above, or e, none of the above.
01:36
So the first thing that you need to do is you need to understand the concept of cash flows from financing activities.
01:44
Financing activities in the statement of cash flow include transactions and events that affect long -term liabilities.
01:52
So ones that affect long -term liabilities, okay, and equity...