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

Question

Quizplus · Accepted Answer

Issuance of debt is not considered an activity generating operating cash flows, it is considered a financing activity. Operating cash flows are generated by activities related to the company's primary operations, such as payments to suppliers, payments for operating expenses, and payments for income taxes.

Using the Direct Method of Preparing the Statement of Cash