Which of the following would not be included in the operating activities section of a statement of cash flows?
A) Cash inflows from returns on loans (i.e., interest).
B) Cash inflows from returns on equity securities (i.e., dividends).
C) Cash outflows to governments for taxes.
D) Cash outflows to reacquire treasury stock.

Question

Quizplus · Accepted Answer

The operating activities section of a statement of cash flows includes cash inflows and outflows that are directly related to the company's primary operations, such as cash received from customers, cash paid for salaries and expenses, and cash paid for inventory. Cash outflows to reacquire treasury stock are not considered part of the company's primary operations, and would be included in the financing activities section instead.

Which of the Following Would Not Be Included in the Operating