Which one of the following is representative of typical cash flows from operating activities?
A)Receipts of cash dividends
B)Repayment of cash loans
C)Proceeds from the issuance of bonds and notes payable
D)Payments to acquire equity securities of other companies
E)Proceeds from collecting the principal amount of loans

Question

Quizplus · Accepted Answer

Receipts of cash dividends are considered operating activities because they are part of the day-to-day operations that involve cash inflows from investments. The other options are related to financing and investing activities, not operating activities.

Which One of the Following Is Representative of Typical Cash