When reading the Cash Outflows from Operating Activities portion of the statement of cash flows, you would expect to find which of the following? I. Payments to suppliers II. Payments to customers III. Payments to employees IV. Payments of interest
V. Payments for income taxes
VI. Other operating payments
A) I, II, III, and V
B) I, III, IV, and VI
C) I, II, III, IV, V, and VI
D) I, III, IV, VI, and V

Question

Quizplus · Accepted Answer

Payments to suppliers, employees, interest, other operating payments, and income taxes are typical cash outflows from operating activities. Payments to customers are not an outflow from operating activities; instead, they represent inflows in the form of revenue.

When Reading the Cash Outflows from Operating Activities Portion of the Statement