In a statement of cash flows, which of the following events would not be classified as an operating activity?
A)purchase of a trading security
B)receipt of a cash dividend
C)payment of interest on a bond issue
D)proceeds from the sale, at a gain, of an available-for-sale security

Question

Quizplus · Accepted Answer

Operating activities in a statement of cash flows typically include transactions that affect net income. Purchases of trading securities, receipt of cash dividends, and payment of interest on bonds are all considered part of the day-to-day operations that affect a company's net income. However, proceeds from the sale of an available-for-sale security, especially at a gain, are considered investing activities, not operating activities, because they relate to the sale of investment assets rather than the primary operations of the business.

In a Statement of Cash Flows, Which of the Following