A corporation raises $500,000 in long‑term debt to acquire additional plant capacity. This is considered
A. an investment cash flow.
B. a financing cash flow.
C. a financing cash flow and investment cash flow, respectively.
D. a financing cash flow and operating cash flow, respectively.
Answer:C
A corporation raises $500,000 in long‑term debt to acquire additional plant capacity. This is considered
A. an investment cash flow. B. a financing cash flow. C. a financing cash flow and investment cash flow, respectively. D. a financing cash flow and operating cash flow, respectively.