On the statement of cash flows, the cash flows from operating activities section would include
A) receipts from the issuance of capital stock
B) payment for interest on short-term notes payable
C) payments for the purchase of investments
D) payments for cash dividends

Question

Quizplus · Accepted Answer

The cash flows from operating activities section of the statement of cash flows includes cash inflows and outflows directly related to the company's core business operations. Payment for interest on short-term notes payable is a cash outflow that typically arises from operating activities, as short-term notes payable are often used to fund day-to-day expenses. Receipts from the issuance of capital stock, payments for the purchase of investments, and payments for cash dividends are more likely to be classified under financing or investing activities on the statement of cash flows.

On the Statement of Cash Flows, the Cash Flows from Operating