Which of the following would be considered an operating activity on the cash flow statement?
A)Payment to purchase equipment
B)The sale of inventory
C)The receipt of cash from sale of equipment
D)Dividends paid to shareholders

Question

Quizplus · Accepted Answer

Operating activities involve cash flows related to the day-to-day operations of the business, such as the sale of inventory. Payment to purchase equipment, receipt of cash from sale of equipment, and dividends paid to shareholders are all categorized as investing activities (for the purchase or sale of assets) or financing activities (for the payment of dividends to shareholders).

Which of the Following Would Be Considered an Operating Activity