An example of a cash outflow from operating activities is
A) loans made by the company to other parties.
B) a payment for employee salaries.
C) payments to acquire treasury stock.
D) payments to acquire investments in debt and equity securities.

Question

Quizplus · Accepted Answer

Payment for employee salaries is a cash outflow from operating activities because it is directly related to the company's primary business operations. The other choices are cash outflows from investing activities (A, D) and financing activities (C).

An Example of a Cash Outflow from Operating Activities Is