Which of the following transactions would decrease the cash from operating activities?
A)The payment of dividends.
B)The sale of goods on account.
C)The purchase of goods on account.
D)The payment of wages.

Question

Quizplus · Accepted Answer

The payment of wages is an operating expense, and paying them would decrease cash from operating activities. Payments of dividends are considered financing activities, while transactions on account (both sales and purchases) do not immediately affect cash, as they are non-cash transactions until the cash is actually paid or received.

Which of the Following Transactions Would Decrease the Cash from Operating