An example of an operating activity on the statement of cash flows is federal taxes paid.Assume the direct method is used.

Name: An example of an operating activity on the statement of cash flows is federal taxes paid.Assume the direct method is used.
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Federal taxes paid is an example of an operating activity and is reported under operating activities section in the statement of cash flows. The direct method reports cash inflows and outflows from operating activities separately.

An Example of an Operating Activity on the Statement of Cash