Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 74

For the following questions, circle the best respones.

Which of the following transactions would not be shown under the operating activities category of the statement of cash flows (using the direct method)?

a. Cash received from customers.

b. Cash paid to purchase land.

c. Cash paid for interest and taxes.

d. Cash paid to merchandise suppliers.

e. Cash paid to employees for salaries.

Step 1 of 6

(a)

Cash flows from operating activities refer to the cash a company earns (or loses) from its regular business activities, such as selling its products or providing services. Cash received from customers would be shown under the operating activities section of the statement of cash flows (using the direct method).