Questions: The investing activities section of the statement of cash flows reports cash receipts and payments that increase or decrease long-term liabilities. True False

The answer is False: the original text in the question...

Explanation: The investing activities section of the statement of cash flows reports cash receipts and payments related to the acquisition and disposal of long-term assets and investments. This includes transactions such as the purchase or sale of property, plant, and equipment, as well as investments in securities.

On the other hand, cash receipts and payments that increase or decrease long-term liabilities are reported in the financing activities section of the statement of cash flows. Financing activities include transactions involving debt, equity, and dividends, such as issuing or repaying long-term debt, issuing stock, and paying dividends to shareholders.

To summarize:

• Investing activities: Related to long-term assets and investments.
• Financing activities: Related to long-term liabilities and equity.