Using the direct method of preparing the statement of cash flows,which of the following is not an activity generating operating cash flows?
A)Payments to employees
B)Payments to suppliers
C)Repayment of debt
D)Payments for operating expenses

Question

Quizplus · Accepted Answer

Repayment of debt is a financing activity, not an operating activity. Operating activities include cash inflows and outflows related to the day-to-day operations of the business, such as payments to employees, payments to suppliers, and payments for operating expenses.

Using the Direct Method of Preparing the Statement of Cash